Arab Today, arab today new lows for daily deals firm groupon
Last Updated : GMT 06:58:51
Arab Today, arab today
Arab Today, arab today

New lows for daily deals firm Groupon

Arab Today, arab today

Arab Today, arab today New lows for daily deals firm Groupon

New York - AFP

Groupon shares plunged to their lowest level since the online deals giant went public a year ago, as analysts offered a harsh response to a disappointing earnings report. Groupon tumbled 29.3 percent to close at $2.77 -- down some 85 percent from the public offering price in November 2011 of $20. Chicago-based Groupon on Thursday reported a loss of $3 million in results that came up shy of most analyst forecasts for a small profit. Revenue increased 32 percent year-over-year to $568.6 million in the third quarter and was up 38 percent in constant currency. But analysts said the company appeared to be stalling, and that moves into new products and international markets were hurting. Daniel Ernst at Hudson Square Research downgraded Groupon, saying \"we believe the aggressive push into direct sales creates operational risks, lower margins and the potential for merchant partner conflict.\" Sterne Agee\'s Arvind Bhatia said that Groupon\'s \"international (segment) was particularly discouraging as it lost money in the quarter -- a meaningful reversal after reaching profitability earlier in the year.\" \"The company and the stock will likely remain in the \'prove to me\' camp until trends reverse on a sustainable basis,\" Bhatia said in a note to clients. Citi analyst Neil Doshi said Groupon\'s move into mobile commerce raised new questions. \"And this management team doesn\'t yet have an execution track record,\" Doshi said. \"In the meantime, the core daily deal business has almost slowed to a halt, and rapid mix-shift to direct revenue drastically changes the profitability profile of the model,\" he added. \"Until we see sustainable growth in core daily deal business coupled with an outlook for expanding core margins, we continue to pass on this deal.\" Edward Woo of Ascendiant Capital Markets said in addition to slow growth and a weak outlook, Groupon faces a loss of top talent due to the collapse in share prices. The decline \"may make it harder for Groupon to retain staff as employees\' stock option values have declined,\" Woo said. \"We believe that staff turnover may increase the possibility for near-term business disruptions.\" Groupon shares were listed on the Nasdaq last November in a blockbuster offering that raised a whopping $700 million and triggered fears that investors were overvaluing hot Internet startups. The company, which rejected a $6 billion takeover offer from Google a year ago, has enjoyed phenomenal growth since its founding in 2008 but has been dogged by questions about its business model and accounting methods. Groupon makes its money by selling members deals for discounts on activities, items or services and then splitting the money with the businesses involved. It recently has expanded into direct sales.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today new lows for daily deals firm groupon Arab Today, arab today new lows for daily deals firm groupon

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today new lows for daily deals firm groupon Arab Today, arab today new lows for daily deals firm groupon

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Mozambique's gas boom dream under threat

GMT 16:29 2017 Monday ,08 May

Mozambique's gas boom dream under threat
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Jaguar displays XF Sportbrake line

GMT 14:36 2017 Monday ,08 May

Jaguar displays XF Sportbrake line
Arab Today, arab today BMW sees forecasts in reach

GMT 09:04 2017 Thursday ,04 May

BMW sees forecasts in reach
Arab Today, arab today Climate science: Bad news gets worse

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday