The Early Years: Founding and Initial Public Offering
Groupon was founded in 2008 by Eric Lefkofsky and Brad Keywell with the goal of connecting consumers with local businesses through discounted deals. The company officially launched in 2009, and within a year, it had already become a household name. This success was largely due to its innovative idea of offering users daily deals and discounts on products and services. By the end of 2010, Groupon had more than 65 million subscribers and had expanded to 35 countries around the world. In 2011, Groupon went public, with its initial public offering (IPO) pricing at $20 per share. After the IPO, the stock price climbed to nearly $30 per share.
The Highs and Lows of 2012-2016
After the company's successful IPO, Groupon's stock price continued to rise, peaking at $31.14 per share in April 2012. However, the stock soon began to decline, and by August 2012, it had dropped to $5.77 per share. This was largely attributed to the company's slowing growth and struggles to monetize its business model. Despite numerous attempts to turn the company around, Groupon's stock price continued to decline until the end of 2013, when it reached its all-time low of $2.60 per share.
The stock price recovered slightly in 2014 and 2015, but it remained relatively flat. Investors were still wary of the company, and it wasn't until 2016 that the stock began to show signs of life. The stock price rose from $4.64 per share in January 2016 to $5.46 per share in December 2016. This was largely due to the company's push to focus more on its mobile app and international expansion.
The 2017-2022 Boom
Groupon's stock price really started to take off in 2017. Thanks to a renewed focus on its mobile app, the stock price rose from $5.46 per share in December 2016 to $5.83 per share in June 2017. From there, the stock price continued to climb, reaching a high of $7.04 per share in November 2017. This marked the first time that the stock had cracked the $7 mark since its IPO in 2011.
The stock price continued to rise in 2018 and 2019, and it reached an all-time high of $9.72 per share in December 2019. This was largely attributed to the company's increased focus on its international markets, as well as the success of its loyalty program. The stock price remained relatively flat in 2020 and 2021, but in 2022, it began to rise again, reaching a high of $9.50 per share in October 2022.
The Outlook for 2023
Groupon's stock price is expected to continue to rise in 2023. The company is continuing to focus on its international markets, and its loyalty program has been a success. In addition, the company is also looking to expand into new markets, such as healthcare and travel. With these initiatives in place, analysts expect Groupon's stock price to reach $10 per share by the end of 2023.
Conclusion
Groupon's stock price has had its ups and downs since its IPO in 2011. After a period of decline, the stock price has been steadily climbing over the last few years, and it is expected to continue to rise in 2023. With its focus on international markets, loyalty program, and expansion into new industries, Groupon is well positioned for future success.