Groupon shares take a steep fall
Groupon, the daily deals hookup, fell 27 percent in trade Tuesday when additional investors were less than impressed by its previous results.
In the afternoon, Groupon shares dropped 72 percent below its November IPO of $20. With the 27 percent fall in Groupon shares this time, the coupon company lost $1.3 billion already.
But in total, $9.4 billion have been lost since the November IPO release.
The Groupon shares problem is blamed on the current financial circumstances in Europe.
According to Chicago Tribune, Clayton Moran of The Benchmark Company deemed it most appropriate to buy, rather than hold his Groupon shares.
Moran said, “It appears the daily deal business has run into a wall, with some blame going to the European recession. We believe the weak trends are likely to persist,”
Though Groupon was originally a booming enterprise in 2008, the sharp decline in Groupon shares was only subsequent. Forbes was among those who shared the opinion that Groupon would flourish, or was flourishing.
This was an easy assumption to make as people saw a company giving away substantial discounts for restaurant and spa trips.
But alongside the positive thinkers were those who feared that maintaining the company was up to maintaining strong daily deals, which they predicted to be a difficult feat.
But Groupon shares were not the only shares to take a fall Tuesday. Angie’s List Inc. fell 16 percent after its IPO release. Angie’s List Inc. is a website that offers consumer reviews of businesses, similar to Yelp.
Mark May of Barclays commented on the Groupon shares drop.
“While the company is still relatively young and much execution lies ahead, we continue to view Groupon in the early stages of what could prove to be a significant and long-term growth opportunity in the local commerce sector globally.”