Why Shares of Groupon Crashed Today

Shares of Groupon (NASDAQ: GRPN) tumbled on Wednesday after the company reported abysmal fourth-quarter results and announced that it would exit the goods category to focus on its local-experience marketplace. The stock was down about 41% at 2:05 p.m. EST.

Groupon reported fourth-quarter revenue of $612.3 million, down 23% year over year and about $92.6 million below the average analyst estimate. Global units sold were down 16% to 42.6 million, driven by fewer customers and lower traffic. In North America, units were down 11% in the local business and down 32% in the goods business.

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Source Fool.com