Ahead of the Bell: Groupon to post 2Q results

NEW YORK (AP) -- Its stock in the gutter, online deals company Groupon Inc. will get a chance to show investors that it can grow when it reports second-quarter earnings after the market closes on Monday.

Groupon's stock has been trading near all-time lows. On Friday, the stock closed at 7.44. That's more than 60 percent below its November initial public offering price of $20.

Slowing growth at the Chicago-based company is the biggest concern for Sterne Agee analyst Arvind Bhatia, who downgraded Groupon last week. He thinks the company has been experiencing soft billing trends in recent months because of the weak economy in Europe and market share gains by smaller rival LivingSocial.

"Given the recent decline in the share price, we are clearly late in the downgrade," wrote Bhatia, who cut his rating on Groupon's stock to "Neutral" from "Buy." He thinks the company is unlikely to see its stock price increase much until analysts lower their estimates.

Analysts, on average, expect Groupon to post earnings of 3 cents per share on revenue of $574.8 million, according to a poll by FactSet.

In May, Groupon forecast revenue of between $550 million and $590 million.