Groupon Inc (GRPN): A New Edge for This Social Media Company

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Financially, among Groupon Inc (NASDAQ:GRPN), Yelp Inc (NYSE:YELP), and OpenTable Inc (NASDAQ:OPEN), OpenTable has the most solid fundamentals and is expected to generate an EPS of $1.93 with a sales growth rate of 16.20% for 2013. Groupon’s sales number is also expected to increase by 9.2% by 2013. Lastly, although Yelp is operating at a loss this year, it is expected to turn a profit by 2014. Yelp’s revenue is expected to grow by 59.60% for 2013 and 43% for 2014.

Foolish takeaway

Groupon Inc (NASDAQ:GRPN) has been a successful turnaround story since the beginning of 2013 as the company is turning into more than a daily deals company, a change cheered by investors.  By launching Groupon Reserve, Groupon strengthens its ties with local businesses and can further leverage its platform and traffic to boost revenue. Although the competition between Groupon and the OpenTable Inc (NASDAQ:OPEN)/Yelp Inc (NYSE:YELP) alliance will pick up, all three companies are expected to ride the growing mobile trend and will continue to benefit from social and local themes.

WenYu Huang has no position in any stocks mentioned. The Motley Fool recommends OpenTable.

The article A New Edge for This Social Media Company originally appeared on Fool.com.

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