Groupon Shares Down 23% After Disappointing Guidance

Shares of Groupon

traded down as much as 23% on Tuesday morning after the company reported earnings Monday afternoon. Earnings per share came in at $0.08, above analysts' expectations of $0.03 and revenue came in at $568.3M, just slightly below the $573.13M estimate. Still, traders sold the stock on the company's guidance, which showed that revenue growth was declining. Following the move, several sell-side analysts updated their ratings. Citigroup downgraded the company to a Neutral from a Buy, while The Benchmark downgraded the company to Hold from Buy. Shares of Groupon traded near $5.80 on Tuesday.