The Strategist

Groupon shares lose over 44%


02/20/2020 - 09:02



Shares of the American coupons discount service Groupon Inc collapsed by more than 44%, to a record low of $ 1.70 during trading in the US on Wednesday. Thus, the papers displayed the most significant one-day sale since 2011 when the company held an IPO.



groupon via flickr
groupon via flickr
This week, Groupon reported a 23% drop in revenue in the fourth quarter of last year compared to the same period of the previous year to $ 612.3 million. The indicator did not significantly reach the forecasts of analysts polled by FactSet, who on average expected $ 705 million.

Groupon's net income was $ 77 million, or $ 0.13 per share, versus $ 46.2 million, or $ 0.08 per share, for the same period in the previous year. Analysts had a consensus forecast of $ 0.12 per share.

The company also announced that it plans to end the sale of consumer goods by the end of this year due to "tough competitive and in some cases economically irrational conditions in the retail segment." Instead, Groupon will focus on the gift and impression segment.

Shares of Groupon closed Wednesday trading with a fall of 44.3%. The company's capitalization decreased by 28.9% since the beginning of the year. 

source: bloomberg.com




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