Groupon's stock hits new low
The Associated Press
Published Friday, November 9, 2012 12:58PM EST
NEW YORK -- Groupon's stock has hit a new low after the online deals company's third-quarter results showed slowing revenue growth and an ongoing decline of its core business.
The stock is down $1.10, or 28.1 per cent, at $2.82 in late morning trading. Earlier, the stock hit its lowest point ever, $2.77. Groupon Inc. went public in November 2011 at a price of $20.
The Chicago-based company blamed the economic weakness in Europe for a revenue shortfall in the July-September quarter.
Groupon says that its "goods" business, which sells physical products rather than restaurant coupons and the like, is growing. But analysts say this is a much less profitable business than the daily deals segment.
Benchmark's Daniel Kurnos sees Groupon's cash flow declining into 2014 as the company invests in long-term growth.