Why I Sold My Groupon Inc (GRPN) Stock

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Amazon is playing the daily deals business from two angles. The first is AmazonLocal, a locally-based, daily deals website directly integrated with Amazon’s larger marketplace. The second is the company’s investment in LivingSocial, perhaps Groupon’s biggest competitor. Amazon owns roughly one-third of LivingSocial.

For its part, eBay has a daily deals website — goods sold at a discount for a limited time. It also has lifestyle deals, which are locally based and primarily consist of services (haircuts, teeth whitening, massages).

Investing in Groupon

Groupon Inc (NASDAQ:GRPN) has had an amazing ride since last November — shares are up an impressive 210%. However, the company seems to be facing quality control issues, while the companies that it’s striving to compete with are expanding into Groupon’s core business.

Sam Mattera owns no shares in any company mentioned. The Motley Fool recommends Amazon.com and eBay. The Motley Fool owns shares of Amazon.com and eBay. Salvatore “Sam” is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Why I Sold My Groupon Stock originally appeared on Fool.com and is written by Sam Mattera.

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