NEW YORK (TheStreet) -- Groupon
(GRPN - Get Report) stock is tanking Wednesday, a result of weaker-than-expected second-quarter guidance and as shares get caught up in a Nasdaq selloff among technology companies.
By midafternoon, shares had plummeted 19.8% to $5.39.
The deals site said it expects revenue between $725 million and $775 million over the three-month period to June, inline with analysts' estimates.
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Meanwhile, management's estimates for earnings breakeven to 2 cents a share showed no growth from a year earlier. Analysts had expected average profits of 3 CENTS a share, according to those polled by Thomson Reuters
TheStreet Ratings team rates GROUPON INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate GROUPON INC (GRPN) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and disappointing return on equity."
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