Why Groupon Stock Fell 8.4% Today
Shares of "experiences retailer" Groupon (NASDAQ: GRPN) closed Tuesday's trading session 8.4% lower, adding to the declines the stock took the previous day. In the end, both days' moves were driven by concerns about one thing.
On Monday, Groupon announced it was going to issue convertible notes in a private placement so it could pay down debt that is scheduled to mature in 2022. The goal was to raise $200 million, with a buyer option to increase that sum to $230 million. Fears over the potential for shareholder dilution from the conversion of these notes into shares was likely what sent the stock price lower that day, even though the company only provided a broad outline of its intentions.
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Source Fool.com
