Groupon Shares Fall off Cliff
According to one analyst, the forecast is underwhelming for Groupon, whose share values lost nearly one fourth of its value. This after the company began taking smaller revenue cuts on deals in order to keep merchants, resulting in falling revenue and profits.
After hours of trading, Groupon share values fell 22% to US$4.65. The company based out of Chicago started to share the money from its deals with its clients to convince them to run offers or work on another offer under the Groupon name. This resulted in a fall in revenues, as confirmed by CFO Jason Child.
Child said, "We are focused on driving growth. We will make the investments we feel we need to optimize for growth and merchant profitability."
While fourth quarter revenues for 2012 rose to US$638.3 million from US$492.2 million in 2011, there was also a reported net loss and operating loss for the fourth quarter of 2012. The shares on revenue, as computed by Thomson Reuters I/B/E/S would be at US$0.03 cents a share.
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