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Groupon ‘Not a Disaster,’ Henry Blodget Proclaims

Groupon's performance isn't nearly as bad as its stock suggests, Business Insider CEO Henry Blodget said Wednesday on CNBC.

"The real problem in the business right now is Europe. It's imploding," he said on "Fast Money." "Now the whole thing is collapsing, but the U.S. is doing OK. So the core business is doing all right."

At a Business Insider conference, Groupon CEO Andrew Mason defended his leadership of the company, touting the company's strong sales growth and positive balance sheet.

Blodget supported those arguments.

"This is a 3-year-old company. It's doing $2½ billion of revenues and $6 billion of total gross merchandise sales, and it's profitable," he said. "That's not a disaster."

(Read More: Would a Groupon CEO Exit Help the Stock?)

Groupon also broke out of the daily deals field and "killed" its competitors, he added.

Blodget also saw potential in Yahoo, his former employer.

"Yahoo has a huge asset, which is 700 million people," he said. "They should be able to build a good business out of that."

Blodget also sounded optimistic about Yahoo CEO Marissa Mayer.

(Read More: Ross Levinsohn: Mobile Could Be Huge for Yahoo)

"I hope with Marissa at the helm — she's doing a great job so far — we can build value in that business," he said.

Facebook could be a turnaround story, following its foundering stock action, Blodget said.

"The new mobile ads seem to be working,"he said, cautioning that shares were trading upward of 40 times earnings. "I still think the stock is expensive."

Written by Bruno J. Navarro, CNBC.com Producer.

Trader disclosure: On Nov. 28, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Tim Seymour is long BAC; Tim Seymour is long INTC; Tim Seymour is long SBUX; Dan Nathan is long MSFT JAN 26/24 1X2 PUT SPREAD; Dan Nathan is long JCP DEC 18/19 CALL SPREAD; Dan Nathan is long YHOO JAN/DEC 17.5/18 CALL SPREAD; Dan Nathan is long BAC JAN 9/7.5 1X2 PUT SPREAD; Steve Grasso is long AET; Steve Grasso is long AKS; Steve Grasso is long ASTM; Steve Grasso is long AUO; Steve Grasso is long BA; Steve Grasso is long CLF; Steve Grasso is long F; Steve Grasso is long GDX; Steve Grasso is long GOOG; Steve Grasso is long LF; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MT; Steve Grasso is long P; Steve Grasso is long PXD; Steve Grasso is long NVIV; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long WYNN; Steve Grasso is long X; Brian Kelly is long QQQ; Brian Kelly is long XLK; Brian Kelly is long XLE; Brian Kelly is long GLD; Brian Kelly is long SLV; Brian Kelly is long NAT GAS; Brian Kelly is short XLV; Brian Kelly is short EWC; Brian Kelly is short EWA.

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