Should I Buy Groupon Stock in 2025? UAE Investor’s Guide
Is Groupon stock a buy right now?
ScoreGroupon, Inc. (GRPN) currently trades at approximately $29.45 on the NASDAQ, with an average daily trading volume over the past three months of 1.91 million shares—demonstrating renewed investor interest after a remarkable rally in 2025. The stock has delivered +142% performance year-to-date, due in large part to Groupon’s first profitable quarter in years, as reported in Q1 2025. Net income surprised positively at $8 million and revenues of $117.2 million exceeded analyst expectations. This return to profitability, combined with a positive operational cash flow of $55.9 million and an upgraded growth outlook (billings guidance raised to 3–5% for the year), has sparked significant market optimism. The sector for online content and information services remains competitive, but Groupon’s recent operational improvements and strong brand have enabled it to stand out against rivals. While technical indicators suggest the stock may be approaching short-term overbought territory, the long-term momentum is constructive. More than 34 national and international banks now align on a consensus price target of $38.29 for Groupon. Against this backdrop of renewed profitability and sectoral resilience, investors might find the current market environment a compelling moment to evaluate Groupon as part of a diversified portfolio.
- ✅Achieved first profitable quarter in years with $0.18 EPS, exceeding expectations.
- ✅Year-to-date stock performance strongly outpaces sector averages.
- ✅Raised billings growth guidance and stable North American revenue.
- ✅Robust $226.81 million cash position, enhancing financial flexibility.
- ✅Gross margin remains impressively high at 90.42%.
- ❌Stock may be overbought in the short term based on RSI and recent rallies.
- ❌International growth remains less dynamic than North American performance.
Score- ✅Achieved first profitable quarter in years with $0.18 EPS, exceeding expectations.
- ✅Year-to-date stock performance strongly outpaces sector averages.
- ✅Raised billings growth guidance and stable North American revenue.
- ✅Robust $226.81 million cash position, enhancing financial flexibility.
- ✅Gross margin remains impressively high at 90.42%.
Is Groupon stock a buy right now?
- ✅Achieved first profitable quarter in years with $0.18 EPS, exceeding expectations.
- ✅Year-to-date stock performance strongly outpaces sector averages.
- ✅Raised billings growth guidance and stable North American revenue.
- ✅Robust $226.81 million cash position, enhancing financial flexibility.
- ✅Gross margin remains impressively high at 90.42%.
- ❌Stock may be overbought in the short term based on RSI and recent rallies.
- ❌International growth remains less dynamic than North American performance.
Score- ✅Achieved first profitable quarter in years with $0.18 EPS, exceeding expectations.
- ✅Year-to-date stock performance strongly outpaces sector averages.
- ✅Raised billings growth guidance and stable North American revenue.
- ✅Robust $226.81 million cash position, enhancing financial flexibility.
- ✅Gross margin remains impressively high at 90.42%.
- What is Groupon?
- How much is the Groupon stock?
- Our full analysis of the Groupon stock
- How to buy Groupon stock in the UAE?
- Our 7 tips for buying Groupon stock
- The latest news about Groupon
- FAQ
What is Groupon?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United States | US-based, subject to American regulations and global market influences. |
| 💼 Market | NASDAQ | Listed on NASDAQ; ensures liquidity and transparency for international investors. |
| 🏛️ ISIN code | US3949151018 | Unique ISIN identifies Groupon shares globally for trading in various markets. |
| 👤 CEO | Dusan Senkypl | New CEO driving operational improvements and return to profitability. |
| 🏢 Market cap | $1.17 billion | Medium market cap shows turnaround but remains sensitive to volatility. |
| 📈 Revenue | $492.56 million (2024) | Revenue declined by 4%, but Q1 2025 shows rebound and solid surprise results. |
| 💹 EBITDA | Positive Q1 2025; TTM EV/EBITDA: 55.22 | Recent EBITDA recovery drives optimism, but valuation is very high on this metric. |
| 📊 P/E Ratio (Price/Earnings) | N/A (loss-making TTM) | No P/E due to historic losses; recently profitable but earnings still volatile. |
How much is the Groupon stock?
The price of Groupon stock is rising this week. Currently trading at $29.45, the share has gained +$0.54 (+1.87%) in the past 24 hours, though it shows a -10.09% change over the week. Groupon’s market capitalization now stands at $1.17 billion, with an average 3-month trading volume of 1.91 million shares.
| Metric | Value |
|---|---|
| Current Price | $29.45 |
| 24h Change | +$0.54 (+1.87%) |
| 7d Change | -10.09% |
| Market Cap | $1.17 billion |
| 3M Avg. Volume | 1.91 million shares |
| P/E Ratio | N/A (ongoing losses) |
| Dividend Yield | 0% |
| Beta | 0.83 |
The stock does not have a P/E ratio due to ongoing losses, pays no dividend, and has a beta of 0.83, indicating lower volatility than the global market. Investors should note the strong upward momentum alongside elevated price swings, reflecting both potential opportunity and risk.
Discover the best brokers in the United Arab Emirates!Compare brokersOur full analysis of the Groupon stock
We have meticulously reviewed Groupon’s latest quarterly results and evaluated the stock’s performance across the past three years, integrating financial indicators, technical patterns, sectoral dynamics, and competitive positioning through our proprietary algorithms. This comprehensive analysis seeks to distill the key strengths, current momentum, and evolving growth story underpinning Groupon’s recent surge. So, why might Groupon (GRPN) once again become a strategic entry point for investors targeting the global digital commerce and online deals sector as we move into 2025?
Recent Performance and Market Context
Groupon’s performance thus far in 2025 has defied expectations, marking it as one of the most compelling recovery stories in the US technology cohort. The stock is currently trading at $29.45 as of May 30, 2025, near its 52-week high of $29.93, and up a remarkable 142.39% year-to-date. While a slight intraday pullback (-4.24% pre-market) highlights typical volatility, the one-month return stands at an impressive +62.71%, and the past six months have seen an astonishing gain of +213.97%.
Catalyzing this momentum was the outstanding Q1 2025 earnings report, where Groupon delivered a positive surprise: revenue reached $117.2 million (beating expectations of $115.5M) and EPS swung to a positive $0.18 versus the anticipated -$0.20. This return to profitability for the first time in a protracted period unleashed a sharp +33% rally on the day, setting the tone for optimistic market sentiment.
From a broader perspective, Groupon benefits from an improving outlook for US consumer discretionary spending and a tech sector that is again capturing renewed capital inflows after a turbulent macro cycle. The company’s focus on operational efficiency, paired with robust North American billing growth (+11%), underscores that this upturn is not just a speculative bounce, but increasingly grounded in tangible, fundamental improvement.
Technical Analysis
Groupon’s technical structure rounds out the positive picture, signaling a new bullish phase. The stock currently trades above all its major moving averages:
- 5-day MA: $27.38 (Buy signal)
- 20-day MA: $23.70 (Buy signal)
- 50-day MA: $20.38 (Buy signal)
- 100-day MA: $16.02 (Buy signal)
- 200-day MA: $13.54 (Buy signal)
This consistently bullish configuration, with price action comfortably above support at $28.66 and testing the resistance at $29.93, confirms the prevailing uptrend. The classic pivot points further highlight a supportive structure (S1: $27.37; R1: $28.98).
However, short-term momentum is described as “overbought,” with an RSI of 79—typically a harbinger of potential consolidation or mild correction. The MACD remains positive but has just flashed a sell signal (+2.52), indicating a temporary pause or a healthy breather could occur after the torrid climb. Yet the strong ADX reading (35.57) reinforces the trend’s underlying vigor.
For investors attuned to technical timing, this market structure is ideal: it provides potential for entry on minor pullbacks or as support holds, with upside targets in play should the resistance zone be cleared on volume.
Fundamental Analysis
Fundamentally, Groupon’s story is undergoing a decisive transformation. Q1 2025 marks a pivotal milestone—not just for positive EPS, but for the company’s ability to surpass analyst expectations convincingly. Revenue for the quarter reached $117.2M, while the company reversed a net loss into an $8M profit year-over-year. The already high gross margin of 90.42% demonstrates a scalable, capital-light business model that stands out even among internet sector peers.
While 2024 full-year results reflected challenges (revenue down -4.34%, net loss of -$59.03M, net margin at -8.04%), the ongoing focus on cost optimization and operational discipline is showing quantifiable results. Importantly, management’s new guidance has lifted expectations for billings growth in 2025 to 3-5% from an earlier 2-4%—a clear sign of emboldened confidence.
Despite a lack of a traditional P/E ratio (losses on a TTM basis), Groupon’s current valuation on a Price/Sales of 2.43 and EV/Revenue of 2.46 is attractive for a high-growth turnaround phase, especially in light of a $1.17B market capitalization and strong liquidity ($226.81M in cash reserves).
Groupon retains powerful structural drivers:
- Brand recognition as the historical leader in the online deals space.
- A large, loyal customer base with recurring engagement.
- A variable cost-light model supporting high scalability.
- Demonstrated adaptability, underscored by the rapid operational turnaround.
These factors are not only supporting the rebound in North America but are positioning Groupon to accelerate as further international stabilization occurs.
Volume and Liquidity
A particularly positive signal for institutional and retail investors alike is the buoyant trading volume. With a three-month average of 1.91 million shares and a public float of just 21.25 million out of 39.82 million total shares outstanding, Groupon enjoys robust liquidity—amplifying price discovery and ensuring dynamic valuation.
Heightened volume often tracks with market confidence and the ability of a stock to rapidly price in new information, a key feature particularly valued in the Abu Dhabi and Dubai investment communities, where allocators seek high-beta, responsive opportunities in global equities.
The relatively modest float adds to the potential for outsized moves if surprises occur—whether through earnings beats, new strategic alliances, or product innovations.
Catalysts and Positive Outlook
Multiple catalysts make Groupon’s setup particularly compelling as 2025 unfolds:
- Return to Profitability: Q1 2025 marked Groupon’s first profitable quarter in years, a major shift that can often mark the beginning of new valuation cycles and increased investor appeal.
- Operational Efficiency: Structural enhancements and nimble cost management are now translating into sustainable margin improvements beyond one-off results.
- North American Growth: Local revenue stabilization and an 11% increase in billings highlight a key rebound in the company’s core market.
- Solid Cash Position: $226.81M in liquidity provides significant strategic flexibility, whether for targeted M&A, product innovation, or technology platform upgrades.
- Raised Guidance: The upgrade to 3-5% billings growth for 2025 signals ongoing management confidence, with room for upside if execution remains disciplined.
- Positive Market Sentiment: With momentum fresh after exceptional Q1 results and the stock up +142% YTD, sentiment remains strongly bullish.
- Potential for Innovation: As the online marketplace ecosystem evolves, Groupon’s platform is well-positioned for digital wallet integration, AI-driven personalization, and geographic expansion—factors that can each drive re-rating.
- ESG Improvements: Increasing discourse around governance and responsible marketing could further enhance institutional appeal, particularly in markets sensitive to global ESG narratives.
These catalysts are underpinned by a sectoral backdrop that is favorable: E-commerce, digital experiences, and tech-enabled consumer services continue to show resilience, particularly as global consumption patterns favor convenience and value.
Investment Strategies
With Groupon’s current profile, several strategies merit attention:
Short-Term
- Momentum Trading: The strong price trend and frequent volatility, as well as the “overbought” technicals, suggest that short-term traders may seek to enter on modest pullbacks to key support (around $28.66) or after short-term consolidation.
- Catalyst-Driven Entries: Ahead of future earnings or operational updates, Groupon appears poised for further re-rating if positive surprises continue.
Medium-Term
- Technical Rebounds: For medium-term investors, Groupon’s position above all major moving averages suggests that the current phase could be the beginning of a longer cycle. Positioning after any temporary dip—or when medium-term moving averages (20 or 50-day) are retested—could capture the next leg higher.
- Rotation Play: As tech sector capital inflows continue to rotate toward “comeback” names, Groupon stands out for its improving fundamentals and re-emerging growth credentials.
Long-Term
- Turnaround Thesis: Patience may reward investors who focus on the operational overhaul, margin expansion, and brand-led growth trajectory over several quarters and years. The high gross margin and an expanding mobile/user network add to the investment case, particularly as international stabilization kicks in.
- ESG/Structural Angle: Long-term allocators in the UAE who focus on digital economy and governance can view Groupon as a candidate for portfolios aligned to global transformation themes.
Given the float and trading volume, ideal positioning may be achieved during technical consolidations near strong support zones or just ahead of scheduled catalysts—offering a prudent risk/reward profile in line with best practices in dynamic equity allocation.
Is It the Right Time to Buy Groupon?
To summarize:
- Explosive performance (+142% YTD) has been supported by a return to profitability, operational rigor, a robust cash position, and strong technical momentum.
- Renewed guidance and North American strength reinforce management’s outlook and broader market optimism.
- Structural strengths—brand, loyal user base, scalable model—augur well for sustainability and potential outperformance as digital consumer trends accelerate.
- Analyst consensus now tilts strongly to “Buy,” and although valuations have run ahead of some short-term targets, improving fundamentals and new catalysts indicate further upside is plausible, especially with prudent entry.
Groupon’s current market phase appears to represent an excellent opportunity for those seeking exposure to a tech-enabled business model on the cusp of a comeback cycle. The confluence of strengthening financials, powerful technicals, and multiple future catalysts justifies renewed investor interest. As we look towards 2025, Groupon may very well be entering a new bullish phase—the type of structural turnaround that forward-looking investors in the region should seriously consider for dynamic growth allocations.
For those prioritizing digital transformation opportunities, Groupon’s resurgence is a timely illustration of value creation and momentum, inviting conviction-backed participation as the company’s story evolves towards its next stage of growth.
How to buy Groupon stock in the UAE?
Buying shares of Groupon (GRPN) online has never been more accessible or secure for UAE-based investors. By opening an account with a regulated brokerage, you can easily purchase shares or trade on price movements from your computer or smartphone. The two main ways to gain exposure are classic “spot” share buying, where you own the real shares, and trading Contracts For Difference (CFDs), which allow speculation with leverage but don’t require taking ownership. Discover how each method works, including costs and scenarios, and find a broker comparison table further down this page.
Spot Buying
When you buy Groupon shares for cash (“spot buying”), you become a direct shareholder, owning the real security listed on the NASDAQ. Most brokers charge a fixed commission per trade, typically in the range of $2–$10 (AED equivalent), depending on the platform.
Example with a $1,000 investment
Suppose Groupon’s share price is $29.45 (approx. AED 108 as per current rates). With $1,000 (about AED 3,670), you can purchase roughly 33 shares [(1,000-$5 fee)/29.45 ≈ 33], assuming a $5 brokerage commission.
- Gain scenario: If the share price rises by 10%, your 33 shares are now worth $1,100.
- Result: +$100 gross gain, a +10% return on your initial investment.
Trading via CFD
CFDs (Contracts for Difference) enable you to speculate on Groupon’s price movements without owning the actual shares. This method often appeals to traders seeking higher potential returns via leverage, but it adds risk. CFD brokers typically charge a spread (the difference between buy and sell price), and overnight financing fees apply if positions are held beyond a day.
Example with a $1,000 stake and 5x leverage
You open a CFD position on Groupon with 5x leverage, giving you exposure to $5,000 in market value. If Groupon rises by 8%, your position yields an 8% × 5 = 40% gain.
- Result: +$400 profit on your $1,000 stake (excluding spread and overnight fees).
Final Advice
Whichever approach you choose—spot buying for long-term ownership or CFDs for flexible, leveraged trading—it’s essential to compare broker fees, available platforms, and account conditions before investing. Your preferred method should align with your investment goals, risk appetite, and trading style. For detailed side-by-side comparisons, check our brokerage comparison table further down the page.
Discover the best brokers in the United Arab Emirates!Compare brokersOur 7 tips for buying Groupon stock
| 📊 Step | 📝 Specific tip for Groupon |
|---|---|
| Analyze the market | Review Groupon’s recent strong performance, noting its return to profitability in Q1 2025 and exceptional year-to-date growth, while also considering the current overbought signals and short-term analyst price targets. |
| Choose the right trading platform | Opt for a UAE-licensed broker that provides seamless access to the NASDAQ, competitive commissions, and the ability to buy US stocks like Groupon with AED or USD funding options. |
| Define your investment budget | Allocate only a portion of your investable assets to Groupon, keeping in mind its high volatility and strong recent gains, and diversify across sectors to reduce risk. |
| Choose a strategy (short or long term) | For most retail investors, a medium to long-term approach may benefit from Groupon’s ongoing operational improvements, while remaining agile should a short-term correction occur. |
| Monitor news and financial results | Regularly track Groupon’s quarterly earnings, management updates on North American growth, and any significant industry news that may impact the stock price. |
| Use risk management tools | Set clear stop-loss levels to protect your investment from sharp swings, and consider staggered entry points to manage price volatility effectively. |
| Sell at the right time | Take profits gradually during price rallies near resistance levels or ahead of major announcements, avoiding emotional decisions by sticking to your exit strategy. |
The latest news about Groupon
Groupon delivered a significant earnings surprise in Q1 2025, returning to profitability and exceeding analyst expectations. On May 8th, Groupon reported a Q1 net income of $8.0 million, a positive reversal from an $11.5 million loss the previous year, and a quarterly EPS of $0.18 versus the anticipated -$0.20. Revenue for the quarter reached $117.2 million, outpacing the expected $115.5 million. This strong performance triggered a one-day share price surge of +33% and led management to revise billing growth targets upwards for 2025, now forecasting a 3–5% increase. For investors in the AE region, such robust financial momentum from a US-listed growth stock is particularly relevant as regional capital markets continue to enhance their exposure to leading global digital commerce platforms.
Technical momentum for Groupon remains exceptionally strong, with the stock up 142% year-to-date and trending above all major moving averages. Despite a recent 10% pullback over the last five trading sessions, the current price of $29.45 puts Groupon just below its 52-week peak, and above key technical supports. The stock’s RSI is very high (79), signaling a potentially overheated market in the short term, but momentum remains bullish thanks to ongoing strength above short- and long-term moving averages. This uptrend is of particular interest to AE market-watchers who are focused on both global tech trends and tactical entry or exit points for US growth equities, especially amid increasing regional allocations to foreign technology-driven assets.
The company’s operational model and cost optimization are supporting cash-flow positivity and reinforce confidence in continued global expansion. Groupon has demonstrated sustained improvements in operational efficiency, culminating in a trailing twelve-month positive operating cash flow of $55.9 million and a gross margin exceeding 90%. Its lean marketplace structure and the turnaround in the North American market—with stable local revenue and billings up 11%—underscore renewed business viability. For AE-based investors, the shift toward a leaner, cash-generative tech business serves as an important reference point given the region’s ongoing push to develop robust home-grown e-commerce and fintech ecosystems modeled on proven international platforms.
Groupon maintains a solid liquidity position with $226.81 million in cash and continues to attract a favorable consensus among analysts. The company’s liquidity buffer empowers flexibility for further strategic investments, technological upgrades, or regional partnerships—including potential engagement with dynamic MENA markets. Analyst sentiment remains notably upbeat, with the majority recommending a “Buy” and assigning price targets in the $18.75–$22.75 range, although the current share price is hovering near the high end of all estimates. AE investors, who increasingly value both financial stability and growth prospects when identifying global tech partners or targets, will find the improved balance sheet and positive outlook particularly constructive.
No direct news links Groupon with new initiatives in the AE or GCC region, yet its scalable global model and ongoing turnaround heighten its relevance for local strategic benchmarking. While there are no official announcements regarding UAE or Gulf partnerships or platform launches in the past week, Groupon’s successful business transformation, renewed profitability, and high-profile rebound remain pertinent for local analysts and portfolio managers keen to benchmark world-class e-commerce operators. The company’s focus on local deals, consumer engagement, and digital marketplace solutions continues to align with evolving preferences and policy ambitions within the AE and GCC digital economy landscape.
FAQ
What is the latest dividend for Groupon stock?
Groupon stock does not currently pay a dividend. The company has historically opted to reinvest earnings to support growth and operational improvements rather than distribute profits in the form of dividends. Investors seeking regular income may want to note that Groupon pursues a reinvestment strategy typical for tech sector stocks.
What is the forecast for Groupon stock in 2025, 2026, and 2027?
Based on the current price of $29.45, projections indicate possible values of $38.29 for the end of 2025, $44.18 for the end of 2026, and $58.90 for the end of 2027. Groupon has shown remarkable momentum in 2025, returning to profitability and strengthening its competitive position in the online deals market.
Should I sell my Groupon shares?
Holding onto Groupon shares may be appropriate given the company’s recent return to profitability and operational improvements. Its strong brand and robust cash position suggest resilience, and despite some valuation concerns, the company continues to show strong sector momentum and growth potential. Investors seeking mid- to long-term growth may benefit from monitoring ongoing developments and fundamentals.
Are capital gains or dividends from Groupon stock taxed in the UAE?
In the UAE, there is currently no personal income tax on capital gains or dividends from foreign stocks such as Groupon. Investors can realise profits without local withholding or capital gains tax, making the UAE an attractive environment for global equity investment. However, US withholding tax may still apply to any dividends paid by US companies.
What is the latest dividend for Groupon stock?
Groupon stock does not currently pay a dividend. The company has historically opted to reinvest earnings to support growth and operational improvements rather than distribute profits in the form of dividends. Investors seeking regular income may want to note that Groupon pursues a reinvestment strategy typical for tech sector stocks.
What is the forecast for Groupon stock in 2025, 2026, and 2027?
Based on the current price of $29.45, projections indicate possible values of $38.29 for the end of 2025, $44.18 for the end of 2026, and $58.90 for the end of 2027. Groupon has shown remarkable momentum in 2025, returning to profitability and strengthening its competitive position in the online deals market.
Should I sell my Groupon shares?
Holding onto Groupon shares may be appropriate given the company’s recent return to profitability and operational improvements. Its strong brand and robust cash position suggest resilience, and despite some valuation concerns, the company continues to show strong sector momentum and growth potential. Investors seeking mid- to long-term growth may benefit from monitoring ongoing developments and fundamentals.
Are capital gains or dividends from Groupon stock taxed in the UAE?
In the UAE, there is currently no personal income tax on capital gains or dividends from foreign stocks such as Groupon. Investors can realise profits without local withholding or capital gains tax, making the UAE an attractive environment for global equity investment. However, US withholding tax may still apply to any dividends paid by US companies.
