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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.

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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:
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