Groupon Stock Plunges to New Low

80 workers laid off as firm faces trouble in Europe
By Matt Cantor,  Newser Staff
Posted Nov 9, 2012 5:10 AM CST
Groupon Stock Plunges to New Low
This Oct. 21, 2011 file photo shows the Groupon logo inside the online coupon company's offices, in Chicago.   (AP Photo/Charles Rex Arbogast, File)

Saddled by weak performance in Europe, Groupon's struggles continue: Its shares dropped to $3.25 in after-hours trading yesterday, sinking below analysts' already muted expectations. The plunge marked a 17% drop from its $3.92 closing price. Since its IPO, the company has lost four-fifths of its value, Reuters notes. Seeking a leaner operation, the company yesterday said it had laid off some 80 employees.

The company's third-quarter revenue was $568.6 million, below analysts' expectations of $590 million; it saw a quarterly net loss of $3 million, compared to a loss of $54.2 million in the third quarter of last year. North American revenue climbed 80% to $292 million, but in Europe, where the company cites "continued challenges," it climbed just 3% to $277 million. (More Groupon stories.)

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