This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Groupon Plunges: What Wall Street's Saying

Updated from 8:35 a.m. to include additional thoughts from Deutsche Bank analyst and updated share price.

NEW YORK (TheStreet) –– Groupon (GRPN - Get Report) continues to see turmoil as it transitions its business model. Its outlook for the coming quarter reflects the uncertainty surrounding its future.

The company's rollout of its "pull" program, in which customers go to the Groupon Web site on their own as opposed to when notified, continues to see traction though at a much lower percentage than "push" customers. Groupon noted that approximately 10% of total traffic in North America was searched, and those customers spent "significantly more than those that did not."

Chicago-based Groupon posted an adjusted gain of 1 cent a share on $751.6 million in revenue, falling short of Wall Street's second-quarter estimates. Analysts surveyed by Thomson Reuters expected the daily deals site to earn an adjusted 1 cent a share on $761.8 million in revenue.

Read More: Warren Buffett's Top 10 Dividend Stocks

During the quarter, Groupon bought back 17.2 million shares of Class A stock, spending $106 million. It has $118 million left on its buyback program, which was initiated in August 2013.

"We had another record quarter in terms of demand, with worldwide billings increasing 29% and reaching their highest level ever," said CEO Eric Lefkofsky in a press release. "Our marketplace continues to gain traction and add to our growth; we reached another all-time high in mobile, and with the launch of Gnome, we believe we're making great strides in connecting local commerce."

For the third quarter, Groupon said it expects on an adjusted basis earnings per share of between breakeven and 2 cents, with revenue of between $720 million and $770 million. Analysts are expecting earnings of 3 cents a share on $759.7 million in sales.

Shares were plunging in early Wednesday trading, falling 16.1% to $5.93. Following the quarter, analysts were largely negative on the quarter and Groupon's outlook. Here's what a few of them had to say:

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
GRPN $7.58 -2.07%
AAPL $124.24 0.70%
FB $83.01 0.11%
GOOG $555.17 -0.65%
TSLA $190.41 -2.00%

Markets

DOW 17,678.23 -40.31 -0.23%
S&P 500 2,056.15 -4.90 -0.24%
NASDAQ 4,863.3620 -13.1570 -0.27%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs