Whither Groupon? The daily deals company saw its shares plumb new depths yesterday after its third-quarter earnings missed analysts' expectations.
At the close shares were $3.92 but in after-hours trading, they sank to an all-time low of $3.32 .
The shares are now more than 80% down from the initial public offering price of $20 last November . Other newly public Web companies including Facebook and Zynga are also having a tough time with investors.
Chicago-based Groupon posted a net loss of $2.98 million down from a loss of $54.2 million in the same quarter last year.
The declining popularity of daily deals is said to be one factor affecting Groupon.
New sources of revenue include an e-commerce service introduced last year, Groupon Goods.
Sameet Sinha, an analyst at B. Riley & Co. in San Francisco, told the Wall Street Journal, “The core business is slowing down dramatically and this other business is growing really fast. It is very low-margin revenue so far.”
Groupon revenue was $568.6 million, up 32% from $430.2 million a year earlier. Sounds good. But the company's own forecast was $580 million to $620 million.