Groupon’s Q3 Shows A Gangly Teenager Growing Into A Profitable Adult
Groupon released its Q3 results, and they look good. Groupon is now basically breakeven, and its North American operations are profitable. This profitability, however, came at the cost of sharply curtailed marketing spending, and therefore growth.
THE BOTTOM LINE, though, is that Groupon is a real business with a big opportunity ahead of it, and should eventually be a big, profitable company.
In other news…
Netflix reports earnings today. We’ll have live coverage on SAI and will follow up with BIR analysis.
Carl Icahn takes a big stake in WebMD. This seems like a bullish signal.
Facebook is testing Facebook Credits, its payments platform, on third-party websites. Right now it seems to be limited to virtual goods on gaming sites. This is a tantalising development, because one business that many speculate Facebook could get into would be online payments to rival PayPal. This is still likely just a limited experiment, however.
Facebook will likely generate more operating income in Q4 than Amazon, Michael Arrington estimates. This is off a much smaller revenue base than Amazon, and the two businesses are very different, but it’s still a striking data point.
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