Boston, MA 09/30/2013 (wallstreetpr) – Shares of Groupon Inc., (NASDAQ:GRPN) were down 3.88% to close at $11.64. The 52-week price range of company’s stock stood at $2.60 to $12.76.
The company seems to be gaining investor confidence by every passing day. Shares of the company gained 145% in 2013 alone, which has been outperforming the otherwise sluggish market. This was also converted into an overzealous options market, which saw a spurt in the call options by 78%. The company has recently acquired SideTour, on which it banks and hopes it to become a major hit in the time to come. The target company SideTour is in the business of an online experience market.
The acquisition can be seen to be strategic one, where both the companies are placed in the local market, and strengths of both can be used to create synergies and enhance the market share collectively. The site is now aiming at developing different types of events, which shall help boost sales. This strategy may work for a company, which has seen a spurt in its sales ever since it launched the concept of ‘Deal of the Day’ to attract consumers with attractive quality brands at heavy discounts. Providing less time to think is a smart way of boosting sale, which would otherwise involve window shopping, albeit online, on the part of customers. Such calculated decisions barely turn into a sale, even though the site is offering the best deal possible.
The company has always been praised to work on an innovative model. The acquired company Side Tour is engaged in showcasing a marketplace which helps the users in conducting an extensive search to find out, book and then showcase a number of localized activities associated with any tours, travels, etc. Such a search service shall add to Groupon’s user experience to search anything. This shall only increase the customer base of the company, which shall do nothing but increase the revenue base of the company.
