Tough times continue for the deals firm Groupon, which disappointed Wall Street on Thursday (Nov. 8) with a net loss of $3 million for the third quarter and below-expectations revenues of $569 million.
In after-hours trading on the Nasdaq, the Chicago-based company's stock fell 62 cents—about 16 percent—to $3.30 per share. Groupon debuted as a public company one year ago at a share price of $20. But that number has been nosediving for months due to investor worries about the long-term viability of its business model, as well as Groupon's ability to expand sales.
While Groupon is still the No. 1 online deals service, No. 2 has also recently showed troubling signs. It was reported last week that LivingSocial's third-quarter revenues were down 10 percent compared to 2012 Q2.