Tough times continue for the deals firm Groupon [1], which disappointed Wall Street on Thursday (Nov. 8) with a net loss of $3 million for the third quarter and below-expectations [2] 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 [3] last week that LivingSocial's third-quarter revenues were down 10 percent compared to 2012 Q2.
Links:
[1] http://www.adweek.com/news/technology/groupon-tries-assuage-stockholder-fears-140103
[2] http://www.siliconbeat.com/2012/11/08/groupon-stock-continues-march-into-oblivion-after-q3-earnings-disappoint/
[3] http://blogs.marketwatch.com/thetell/2012/10/31/groupon-outlook-clouds-with-livingsocial-data/