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Deal or no deal? Groupon under pressure


Deal or no deal? Groupon under pressure


Shares of Groupon slumped over 20 percent on Tuesday after its quarterly revenue came in lower than expected and it gave a cautious profit outlook.

The company – which offers big daily discounts on local retailers’ services to millions of online subscribers – partly blamed the weak European economy.

Its shares have lost three quarters of their value since they were first floated last November.

Groupon is one of several high-profile consumer internet companies to disappoint investors after raising expectations during their market debuts. The others are Facebook and Zynga.

With Groupon’s original high-margin “daily deals” business showing signs of slowing, it has expanded into consumer product sales and merchant services, which bring lower profits.

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