Groupon gains achieved for the first time, its shares plummet as
For the first time in its existence, the rule of coupons delivered Groupon profit figures in its financial Results for the second quarter. However, this did not convince investors about the future of the company, prompting shares to fall 23% in the transactions after the market close.
Positive results were below analysts’ estimates. Groupon reported net income of USD $28.4 million, compared with a loss of $107.5 million the same quarter last year.
Groupon is one of the Internet companies that are having problems in the bag, along with Zynga and Facebook, which fail to convince investors that they are a good deal. Groupon blamed its European operations to lower results than expected, citing the economic crisis.
However, the problem of these companies is dependent on a single revenue stream is not very strong. Groupon has tried to diversify from directly selling products and services, and coupons. Nevertheless, the company hopes to improve much in the next quarter, anticipating earnings between $15 million and $35 million.
Link: Hold onto your hats, world: Groupon Actually made a PROFIT (Register)Tags: Actions, Bag, earnings, Groupon, losses, money, Results