Groupon Stock Slides 20% on Poor Earnings Report
The Groupon roller coaster ride shows little sign of slowing down after a weak earnings report sent their stock tumbling 20% in after hours trading. It culminates an interesting year for the site.
In late 2011 they were hit by a large financial loss, with an Accenture report revealing that more Americans dislike the site than like it.
To add to their woe, they also received a record number of complaints from users, and 70% of small businesses were said to hate the site.
Despite that however, research by Rice University recently revealed that far from in decline, daily deal sites such as Groupon were in fact maintaining their popularity.
That popularity does not appear to have met Wall Street expectations however. The company announced revenue of $568.3 million, some $5 million short of expectations.
The company blamed European performance for much of this quarter’s troubles but had trouble convincing investors that it otherwise had a “strong quarter.”
Investors are not convinced though. Groupon has issued expectations for revenue and income for the next quarter, and both are lower than Wall Street was hoping for.
The company has had some trouble with its earnings in the past. Recently, Groupon had to revise its fourth quarter earnings report, which originally stated that revenue was $14.3 million higher than it actually was. The company also changed its operating income numbers to report a $15 million loss, as opposed to a $15 million gain.