Groupon (GRPN) Stock Declines Further After Earnings Report
NEW YORK (TheStreet) -- Groupon (GRPN) - Get Report stock continues to decline after the company reported its 2015 third quarter earnings results and named a new CEO.
On Tuesday after the market close, Groupon reported earnings of 5 cents per share on revenue of $713.6 million.
Analysts estimated the company would report earnings of 2 cents per share on revenue of $732.7 million.
New company CEO Rich Williams will increase investments in marketing at the expense of Groupon's bottom line, Bloomberg reported.
"Groupon is now saying, 'OK, we need to grow new customers,' and they're investing more in it, and people are concerned that money will go to waste because there's too much competition," Sameet Sinha, an analyst at at B Riley & Co., told Bloomberg.
Shares of Groupon, which operates online local commerce marketplaces, were down 0.17% to $2.96 on heavy trading volume on Thursday.
Separately, 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 multiple 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. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: GRPN
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