Groupon Stock Plunges as Revenue Comes in Nearly $100 Million Below Expectations
Groupon (NASDAQ: GRPN) nosedived in Wednesday trading following a massive earnings miss. The Chicago-based online marketplace company saw its stock fall by 44.3% by the end of the day as the company also announced that it would institute a reverse stock split. The market reacted by taking the stock to $1.70 per share, an all-time low.
This reaction forces Groupon bulls to make a tough decision. They must decide whether the latest strategy will eventually forge a path forward or whether they should cut their losses.
For the fourth quarter, Groupon reported earnings of $0.07 per share. That came in $0.08 per share below expectations. It also represents a decline from the same quarter in 2018, when the company earned $0.10 per share. Revenues of $612.3 million fell 23% year-over-year. Wall Street had expected $709.35 million.
Source Fool.com
