Groupon hammered after fresh losses last quarter, bleak future in the making
AFPNEW YORK--Groupon shares took a nosedive Wednesday after the online deals giant surprised markets by reporting fresh losses in the past quarter and a weaker-than-expected outlook.
March 1, 2013, 12:03 am TWN
Shares plunged 24 percent to US$4.53 in after-hours trade after the Chicago-based firm reported a loss of US$81 million in the fourth quarter, and a US$67 million dollar deficit for the full year.
The loss translated to 12 cents per share in the quarter, compared with expectations of a profit of three cents a share.
With the daily deals sector fading fast after last year's optimism, Groupon also offered a weak revenue outlook of US$560 million to US$610 million, well below market expectations of US$650 million.
Groupon shares were listed on the Nasdaq in 2011 in a blockbuster public offering that raised a whopping US$700 million and triggered fears that investors were overvaluing hot Internet startups.