Groupon Shares Hit Their Lowest Ever

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 comp...
Groupon Shares Hit Their Lowest Ever
Written by Chris Crum
  • 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.

    Get the WebProNews newsletter delivered to your inbox

    Get the free daily newsletter read by decision makers

    Subscribe
    Advertise with Us

    Ready to get started?

    Get our media kit