While the customer increase seems like a promising sign, Groupon still looks like a fundamentally flawed business. A sequential increase in the customer base of 4% should have led to more than a year-over-year increase in revenue of 2%.
Groupon Inc (NASDAQ:GRPN) stock had quite a ride so far in 2016. In February, it more than doubled. After it reported first-quarter earnings in April, Groupon stock plunged more than 25% in a few trading sessions.
On my last take on Groupon (NASDAQ:GRPN), I told you that I thought GRPN would double from the $3 a share mark (please consider: Groupon's Discount Might Be Fleeting). Indeed, since February 11 when I wrote that article, GRPN has done just that.