Why Groupon Stock Crashed on Wednesday

Shares of (NASDAQ: GRPN) fell as much as 16.8% on Wednesday morning, hamstrung by a mixed second-quarter report with gloomy guidance for the next period.

Groupon reported second-quarter revenue of $124.6 million, surpassing analyst expectations of $121.7 million. The bottom-line loss of $0.02 per share came in below Wall Street's consensus target of a $0.02 net profit per share.

So it was a mixed bag, but more importantly, management's outlook for the ongoing third quarter didn't sit well with investors. The company projected third-quarter revenue between $114 million and $120 million, far below the consensus estimate of $131 million. Adding to the revenue woes, Groupon lowered its full-year adjusted EBITDA outlook to $65 million-$80 million from the previous range of $80 million-$100 million.

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Source Fool.com