Stock Pick

  • Groupon Rises After-Hours Despite Revenue Plunging 35% Y/Y

    Groupon Rises After-Hours Despite Revenue Plunging 35% Y/YShares in daily-deal site Groupon (GRPN) rose 4% after-hours on Tuesday after the company reported earning results that surpassed the Street’s very low expectations.Specifically, first quarter non-GAAP EPS of -$1.63 beat Street estimates by $0.28 while revenue of $374.15M beats by $22.45M. Nonetheless revenue still plunged 35.3% year-over-year, while GAAP EPS of -$7.53 fell short of Street expectations by $4.11.Total Gross Billings of $526.66M also represented a significant year-over-year drop of 31.5%, while gross profit was $201.2 million in the first quarter 2020, down 34%.“COVID-19 has had a major impact on our business and we have moved quickly to position Groupon to weather the pandemic and to help our merchants face these unprecedented challenges,” said Aaron Cooper, Interim CEO of Groupon.In terms of geographical breakdown, North America gross profit in the first quarter decreased 31% to $143.8 million, primarily due to the negative impact of COVID-19 on demand and refund levels in March and lower goods performance. International gross profit took a more severe hit, decreasing 40% to $57.5 million.North America active customers were 25.3 million as of March 31, 2020 with 16.5 million international active customers.However marketing expense declined by 36% to $60.1 million in Q1 2020 due to accelerated traffic declines, significantly shortened payback thresholds, and lower investment in offline marketing and brand.As a result, GRPN ended the first quarter with $667 million in cash, which included $150 million of outstanding borrowings under a revolving credit facility.Despite a 12% rally on Tuesday, Groupon is nonetheless trading down 43% year-to-date. Analysts have a cautious Hold consensus on the stock, with 3 recent hold ratings and 1 sell rating. Meanwhile the average analyst price target of $23.40 indicates further downside potential of 14% from current levels. (See GRPN stock analysis on TipRanks).“We note that the poor execution and results over the past several years will increase investor’s skepticism on near and long term profitability and growth and valuation of the company” stated Ascendiant Capital analyst Edward Woo.Related News: Facebook Unveils Tighter Political Ad Measures Ahead of US Elections AT&T Mulls $4 Billion Sale Of Gaming Division- Report Match Group and Bumble Put To Bed All Litigation Claims More recent articles from Smarter Analyst: * Fulgent Pops 18% In After-Market On FDA Nod For Covid-19 Home Test * Amarin, Apotex Settle Vascepa Dispute; Analyst Stays Sidelined * Google and Carrefour Roll Out Voice-Based Shopping Service In France * Facebook Unveils Tighter Political Ad Measures Ahead of US Elections

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  • 3 fantastic ASX 50 shares I would buy today

    man drawing upward curve on 2020 graph, asx share price growth

    The S&P/ASX 50 index is home to 50 of the largest shares on the Australian share market. These are predominantly household names and companies that are true blue chip shares.

    While not all shares on the index are necessarily in the buy zone, I think there are a few that could be.

    Here’s why I would buy these three outstanding ASX 50 shares:

    Aristocrat Leisure Limited (ASX: ALL)

    The first ASX 50 share to consider buying is Aristocrat Leisure. I’m a big fan of the gaming technology company due to the quality of both it poker machine and digital businesses. I believe both businesses have the potential to grow at an above-average rate over the long term thanks to their quality portfolios, high levels of investment in product design, and strong market positions. Combined, I expect solid earnings growth from Aristocrat Leisure for years to come once the pandemic passes. This could make it a top long term option.

    Rio Tinto Limited (ASX: RIO)

    Another ASX 50 share I would buy is Rio Tinto. I think the mining giant could be a great option for investors that are wanting to diversify their portfolio with a little exposure to the resources sector. Especially given the recent increase in the iron ore price. This looks to have positioned Rio Tinto perfectly to deliver bumper free cash flows from its world class operations in FY 2020 and FY 2021. And given the strength of its balance sheet, this is likely to lead to the miner rewarding shareholders with handsome dividends.

    Woolworths Limited (ASX: WOW)

    A final ASX 50 share which I think is worth considering is Woolworths. I’m a big fan of Woolworths due to its quality brands (Woolworths supermarkets, Dan Murphy’s, BWS), their defensive qualities, and its strong management team. I believe they have put the company in a position to generate robust earnings growth for the foreseeable future. And with Woolworths traditionally paying out a good portion of its profits as dividends, this bodes well for investors in search of income in this low interest rate environment.

    And listed below are more strong shares that look great value right now…

    3 “Double Down” stocks to ride the bull market higher

    Motley Fool resident tech stock expert Dr. Anirban Mahanti has identified three stocks he thinks can ride the bull market even higher, potentially supercharging your wealth in 2020 and beyond.

    Doc Mahanti likes them so much he has issued “double down” buy alerts on all three stocks to members of his Motley Fool Extreme Opportunities stock picking service.

    See the Double Down Stocks

    *Extreme Opportunities returns as of June 5th 2020

    More reading

    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post 3 fantastic ASX 50 shares I would buy today appeared first on Motley Fool Australia.

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  • Tencent Buying iQiyi Smells a Lot Like That Uber Deal

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