Why Groupon Stock Plummeted by 27% on Wednesday
(NASDAQ: GRPN) published its latest set of quarterly figures after market hours Wednesday, and investors reacted rather negatively to the news. Combined with a new development about financing, the company's latest communications didn't make them happy. They expressed their displeasure by trading down the stock by 27% the following trading session. This was on a day when the S 500 index essentially traded sideways.
In its third quarter, Groupon earned revenue of $114.5 million. This tally was down by 9% year over year. It was on the back of an 8% decline in gross billings, which landed at slightly under $299 million. The news was much better on the bottom line, where the online deals purveyor flipped to a GAAP profit of $13.9 million ($0.33 per share) against the third-quarter 2023 loss of more than $41 million.
According to data compiled by Zacks, Groupon trounced the average analyst estimate of a loss of $0.25 per share. It came up almost 4% short of the consensus revenue forecast.
Source Fool.com
