Groupon (GRPN) shares continue to fall Tuesday morning after a disappointing second quarter earnings report sent the stock price to a new low in after-hours trading Monday. Most recently the stock was down 23 percent to $5.78 a share.
The Chicago-based daily deals website reported weaker-than-expected second quarter revenues totaling $568 million, or 8 cents a share, compared to forecasts of $575 million. Sales increased 45 percent from the same quarter in 2011, but rose only 2 percent from the first quarter.
As of the quarter ending June 30, Groupon reported it had 38 million active users — a 65 percent year-over-year increase — and that North American revenue grew 66 percent year-over-year. Groupon cited Europe for its weaker growth, yet others wonder if daily deal fatigue has set in.
While the stock is down 70 percent from its $20 IPO price, the company is now profitable — the second quarter was the company's first-ever profit generatingRead More »from Groupon Slumps as ‘Daily Deal Fatigue’ Overshadows First Quarterly Profit