Groupon Stock Collapsed This Week. Here's Why
(NASDAQ: GRPN) stock has seen its shares collapse this week, according to data from S&P Global Market Intelligence. After reporting weak growth and more losses in the second quarter, Wall Street sold off the digital coupon platform's stock by over 30%. As of market close on Thursday, Aug. 1, Groupon is down 32% this week. It is off 97% from all-time highs set over a decade ago.
Here's why Groupon stock was falling once again this week.
In its second-quarter earnings report on July 30, Groupon posted disappointing financial news for investors. Revenue fell 3% year over year to $124.6 million. Investors hate shrinking revenues, so this was a negative right off the bat. Further down the income statement, it gets even worse. Groupon spent $36.5 million on marketing in the quarter, or 32% of gross profit. This was a huge jump from 20% of gross profit a year ago. Even though it is spending more on marketing, Groupon's revenue is falling.
Source Fool.com
Groupon Inc. A Stock
Currently there is a rather positive sentiment for Groupon Inc. A with 5 Buy predictions and 3 Sell predictions.
Based on the current price of 1.22 € the target price of 20 € shows a potential of 1532.92% for Groupon Inc. A which would more than double the current price.
