Groupon Shares Hit Their Lowest Ever

    August 14, 2012
    Chris Crum
    Comments are off for this post.

Groupon shares have reached their lowest point since the company has been public. As of the time of this writing, shares are sitting at $5.55, down 26.49%‎.

The nosedive occurred, following the company’s earnings release on Monday, despite the company’s 45% year-over-year increase in revenue at $568% and its operating income of $46.5 million (compared to an operating loss of $101.0 million in the year-ago period).

Analysts believe Groupon’s slowing billings growth is a major contributor to the stock’s fall, along with the company’s lower-than-expected outlook.

The billings growth rate was 38% (YoY) for the quarter compared to 102% in Q1. That’s a pretty drastic drop.

Groupon expects Q3 revenue to be between $580 million and $620 million, an increase of between 35% and 44% compared with the third quarter 2011. Income from operations for Q3 is expected to be between $15 million and $35 million, compared with a loss from operations of $0.2 million in the third quarter 2011.

Groupon shares IPO’d at $20, and hit about $30 on its opening day.

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    Is this maybe the first sign of another burst of the internet bubble? Will there be others to follow, like Facebook or Zynga?

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    Probably wrong, but I like to think it’s more people moving away from all this creepy collective crap that was so popular a few years ago.

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    This isn’t that big of a surprise, it’s just another tech type bubble. Facebook is on the verge of a similar backlash, but hopefully their full value will be realized. The biggest issue for Groupon is the fact that they make MANY smaller businesses lose money. The over saturation is one thing, and the lack of return business my local companies is another.

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