Groupon Spiked Lower; Analyst Says May Volume Disappoints

Groupon GRPN shares slipped as much as five percent Wednesday but then recovered, after an analyst said the company's volume of business in May was disappointing.

Steven Weinstein of ITG Investment Research cut his estimate for domestic billings in the second quarter from $770 to $745, according to Bloomberg news service.

The amount spent on Groupon purchases in the second quarter through May were flat compared with a year ago and down from the first quarter, according to Weinstein.

Groupon ended Tuesday with a 4.5 percent gain after rising five percent Monday, perhaps based on positive comments from two different analysts.

The stock traded recently at $6.71, down 1.02 percent from Tuesday's close.