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Will This Fintech Investment Be The Saving Grace For Groupon Stock?

Trade GRPN Stock Your Capital Is At Risk
Updated: 22 Dec 2021
  • Groupon's bearish sentiment is misplaced moving into 2022
  • Prescience Point argues for a 300% upside in the e-commerce stock
  • Sellers have overlooked a promising investment in rapidly growing fintech SumUp.U

 

Severe pandemic headwinds and a strong case of bearish oversight have left Groupon (NASDAQ: GRPN) in a sort of no-mans-land. Whilst some backed the stability of the e-commerce marketplace through success in their localized markets, the pandemic has thrown normal growth statistics off-kilter, resulting in an easy argument for a continued downside and a hazy view of the company moving forward. 

Well, in a recent report from Prescience Point Capital, the stock was deemed ‘wrongly left for dead’ – blaming an ‘antiquated bear thesis’ for the seller-heavy market. Now, on the surface, it might be easy to latch on to arguments that suggest Groupon’s glory days are fading – especially in regards to this year’s stock trend. However, the diamond in the rough here, as was pointed out by Prescience Point, is the company’s investment in the thriving fintech startup – SumUp, which is estimated to potentially boost Groupon stock by 300%.

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SumUp is already believed to be worth at least $268M – which is around 40% of Groupon’s current enterprise value. Groupon’s stake in the fast-growing merchant payment service has somehow been overlooked by market participants – when it is predominantly this investment that has the potential to seesaw Groupon’s stagnant growth into long-term upside potential. 

Of course, aspects like a loyal, returning customer base create a foundation of profitability; but it seems like the overlooked investment in SumUp is what the market should be talking about here. Is Groupon stock poised for growth in 2022?

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