Groupon, an American discount service, has lost a lot in stock prices. On Wednesday, the price of securities fell almost 45% to a value of $ 1.7 per share. It seems to be the biggest sale since 2011, when the company held the IPO.
The company’s negative report on the revenue in the IV quarter of last year caused such a catastrophic fall. Compared to the same period in 2018, the revenue fell by 23% (to $ 612 million). According to analysts, the figure should have been much larger – $ 705 million.
The company’s profit for the specified period is equal to 77 million US dollars or only 13 cents in terms of per share. At first, it was projected 12 cents per share. The profit for the IV quarter of 2018 amounted to $ 46 million (8 cents per share).
Groupon’s representatives say that this year the service will cease to work in the field of consumer goods. The reason is the great competition and difficult retail environment. The company will focus on gifts and experiences.
On Wednesday, Groupon securities fell 44.3%. Since the beginning of 2020, the company’s market value has fallen by 29%.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group