Why Groupon Shares Fell 36% in September
Shares of Groupon (NASDAQ: GRPN) fell 35.9% in September 2020, according to data from S&P Global Market Intelligence. The discount-deals marketplace's stock more than doubled in August, but those gains turned out to be brittle in the following month.
The August gains took a 12% haircut on Sept. 14, when Groupon published a presentation with details on the company's move to a new business model. A change to the company's accounting policies will boost Groupon's gross margins while lowering its top-line revenues from now on. The policy change is largely cosmetic and should not affect Groupon's earnings or cash flows, but many investors still headed for the exits since revenues will look skimpy in future earnings reports.
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Source Fool.com
