Groupon Inc (GRPN) Stock Attempts To Bounce Back: Will The Rally Continue?
5:01 pm Wednesday, July 21st, 2021
As vaccination numbers rise and the number of daily cases comes down, investors are now increasingly looking to get into stocks that could be reopening plays. One of the stocks to have caught the fancy of some investors is that of Groupon Inc (NASDAQ:GRPN).
Yesterday, the stock was in action and managed to clock gains of as much as 7% as investors moved into it as a potential reopening play. There was no news about the company yesterday and it seems that like other potential reopening plays, the Groupon stock also staged a recovery after fears about the COVID 19 delta variant had caused some panic. That being said, it should also be noted although Groupon is not technically a reopening stock, many analysts have included the stock in the same cluster of stocks.
The classification was made by analysts back in 2020 after vaccines had been approved and that had led to a remarkable rally in the Groupon stock. Over the course of the past year or so, the stock has managed to deliver major gains.
While investors may have an interest in the stock due to its possibilities as a reopening play, it is necessary to note that Groupon is not actually doing any better as a business. The company’s revenues had been on a downward spiral before the pandemic hit and it is unlikely that after reopening, things are going to improve dramatically. Hence, it might be a bit too risky for investors to get into the Groupon stock at this point.
