Wednesday, August 15, 2012

Groupon stock plummet as discount deal provider loses $1.3 BILLION in value in a DAY

Groupon's stock is 27 per cent cheaper Tuesday, but that doesn't make it a bargain.

Its stock fell as analysts slashed targets and ratings on the online deals company after it reported its first-ever quarter-to-quarter decline in gross billings, a measure of how much money Groupon collects from customers.

Groupon hit $5.46 in afternoon trading, down 72 per cent from its $20 November IPO price and losing almost $1.3 billion of value on Tuesday. The total value lost since its IPO is nearly $9.4 billion.

Groupon blamed the weak economy in Europe and unfavorable currency-exchange rates.

But analysts pointed to a more troubling possibility: online deals fatigue. Read More