Fox Business
Expand
Browse All Video
Watch Live

You're watching...

Is Groupon a ‘Buy’ for Investors?

Details

  • Description

    Global X Funds co-founder Bruno Del Ama on the outlook for Groupon and Facebook’s IPO.

  • Duration 3:51
  • Date

Clips

Also in this playlist...

Latest Video

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

But let's turn back to respond -- -- beating its earnings estimates just minutes ago shares on the terror today -- the after -- session.

But the company is still found about 550%.

Since its IPO back in November.

-- Bernard Lama is the CEO of global -- funds and creator of the first social media ETF and he joins us now Bruno thank you for being here promised well obviously it's what about Groupon good first quarter numbers you like this stock.

Because we said is down 50% since its IPO back in November.

-- like didn't look like a lot more -- now we're elected back in November -- and always has a lot more attractive the first quarter was a good quarter there were a lot of questions about.

The management team their ability to execute obviously the accounting issues some of the other nations to cut up about a great -- -- first quarter.

Was this company done cooking by the time it had its initial public offering was ready to go public.

I know obviously they weren't not ready to go public or a lot of issues that to have to work through with the rest of our accounting with the -- that are internal compliance that's definitely been an issue that's hard -- company.

But in terms of -- you know our company that's growing -- you know 80% 100%.

That's a pretty attractive business so from an investment perspective it's something that we do -- and do you believe that growth is sustainable with this point because we do hear that businesses who get involved in the daily deal.

They'll try it once or twice and figured this isn't really worth my time but then other once fill the void how long does that continue.

Well you can't continue those growth rates forever obviously growth rates in the US are about.

80% and those are obviously pretty healthy numbers but.

-- growth internationally.

Higher than data but -- 120%.

I saw was -- they're still -- seeing significant growth is still see significant growth potential.

Both in the US have more so internationally.

But obviously that's gonna slow down you know over the years.

-- the best course of the big event on Friday as the FaceBook IPO is this a stock you can add -- ETF portfolio do you like FaceBook or you concerned.

As some are about the revenue growth where's it gonna come from and their ability to continue to grow.

How we will act out FaceBook -- few days after the IPO we do like cafes took a lot and obviously that's one of the largest.

Our companies within social media -- like social media generally because of the social network effects that they built the reason we -- to.

The FaceBook sort of maintenance is because our friends are there are social but do you share the concerns about where's the revenue growth gonna come for the being pretty slow and adapting to the mobile FaceBook users which are continuing to grow as the PC uses the continuing to decline right.

We think it's very important to think about these business in two faces the first -- is to build the network itself that's how you build.

The ability to protect your business wants you to that the second phase of growth and that's something that we're just starting to see.

He's monetizing those networks.

We haven't seen that how we're gonna have a slow down.

On how much -- over the last number of users we're gonna see a significant acceleration of the revenue growth.

And I started monetizing those that you're actually starting to see state laws built around FaceBook of whether employers can ask people for their FaceBook password to see what they've been doing on their personal time.

Is that mean that this company may eventually jump the shark so to speak communing at some point it will lose its cool factor.

What we we see of these with cycle well we still you know we see a lot of privacy laws going around and -- crotch -- business of what Google's doing a household name.

-- the same thing is starting to happen with basic it's gonna continue to happen but today really hasn't slowed to local we'll down I don't think what's gonna so faced with time.

Very needed for not to alarm.

Let's start at the first social media ETF house at doing.

-- -- great governor in assets out pretty quickly obviously there's a lot of excitement now in anticipation of the FaceBook IPO and adding the company.

Thought into the -- and the returns have been now pretty reasonable so far from San Bruno thank you appreciate it.

Load More