Groupon Shares Slammed After Weak Quarter
Shares of Groupon (NASDAQ: GRPN) tumbled in after-hours trading on Wednesday, falling well over 20 percent.
The daily deals website posted a loss per share of $0.05 -- analysts had been anticipating a gain of $0.03. Revenue was also weak, coming in at $638.30 million, less than the $640 million that had been anticipated.
Likewise, guidance was light. Groupon guided first-quarter sales of $560-610 million, far less than the $650 million analysts had been expecting.
Shares of Groupon have performed tremendously over the past few months, more than doubling since hitting a low near $2.70 in mid-November. Hedge fund Tiger Global purchased about a 10 percent stake in the company late last year.
Yet, there have been signs that the daily deals space has been struggling. Amazon (NASDAQ: AMZN) took a big write-down on its investment in Groupon's biggest rival, Living Social, when it reported earnings back in October.
Similarly, Google (NASDAQ: GOOG) -- which had once attempted to purchase Groupon years ago -- sold its DailyDeal acquisition back to its founders just a few weeks ago.
Groupon's earnings conference call is scheduled to begin at 5:00 pm EST.
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