Share Price Rises As Groupon Takes To The Big Screen

Only last month Groupon (GRPN) suffered its worst single-day slide on the Nasdaq in more than 17 months, when shares slid by 10.6% on Wednesday, November 7. The third quarter results for the company were also less than positive with profits of $593 million compared to the analysts' projections of $602 million.

At the time, there was much talk of a revitalized future for the company, resulting from its dedication to the modernization of its services. This included the introduction of card-linked discounts, as opposed to traditional vouchers; helping Groupon in its continuing journey to becoming a utility.

Deal with AMC Theatres

Move on just a few weeks and the share picture is starting to look a little different. GRPN shares closed the day on December 3, 2018 at 3.12 (up from 2.92 at November 7 close) with continued stability looking likely following the company’s deal with AMC Theatres.

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The deal, which is set to take force in the first half of 2019, means that Groupon users will have access to movie tickets for any AMC theatre across the US, through the online marketplace. The deal is set to be just the start of the relationship between the forward-looking Groupon and the movie theatre giant. The two companies are set to look at further ways in which they can join forces in the future.

A step towards becoming a utility

Groupon CEO, Rich Williams, recently spoke to CNBC about the company’s move towards becoming a utility for its customers. It seems as though the AMC deal is an important move in the right direction, as the rise, and increased stability, in share prices has reflected. After all, visiting the movies is an important utility in the life of many Groupon customers.

Now that they are going to be able to purchase their tickets from Groupon, moviegoers might be more likely to start using the marketplace on a regular basis, rather than just when they receive an interesting offer in their inbox.

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