Groupon Shares Sliding

Groupon, the online site that offers great deals on a variety of goods and services, is struggling to stay afloat. For many people, the daily deals offered to consumers and merchants are no longer as appealing as they used to be.  Groupon’s third-quarter earnings report missed Wall Street predictions. According to the Globe and Mail, Groupon reported break-even earnings on $568.8 million in revenue when analysts were looking for earnings of 3 cents a share on $590.12 million in revenue. Before its initial public offering, investors praised Groupon as it was gaining prominence during the recession in 2010 into 2011. However, cash flow has decreased thirty-five per cent year over year. Europe has been problematic for Groupon partly because of the sovereign debt crisis that has “dented demand for higher-priced deals.”  Some European merchants have turned away from Groupon for offering steeper discounts. Groupon, Inc. currently has a share price of $2.76, dropping 29.592%. It will take a lot for investors to buy Groupon shares based with only a slim hope of a successful turnaround.

Groupon, Inc. 5 Year Performance