Why Groupon (GRPN) Stock Is Falling In Pre-Market Trading Today

NEW YORK (TheStreet) --Shares of Groupon Inc. (GRPN) are declining by -16.54% to $5.90 in pre-market trading on Wednesday, after the company reported a drop in adjusted EBITDA to $59.1 million for the 2014 second quarter, compared to $80.5 million for the year ago period.

Groupon, an e-commerce marketplace, posted a net loss of -$22.9 million, or -3 cents per share versus a loss of -$7.6 million, or -1 cent per share for the 2013 second quarter.

Groupon said its marketplace "continues to gain traction," but the transition to a larger site like Amazon.com (AMZN) has led to more expenses, resulting in reduced earnings, RTT News reports.

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However, the company said revenue increased 23% to $751.6 million from $608.7 million for the same quarter in 2013.

Analysts polled by Thomson Reuters expected revenue of $761.8 million for the 2014 second quarter.

Groupon issued weak guidance for its 2014 third quarter as it expects earnings between zero and two cents per share on revenue between $720 million and $770 million.

Analysts are expecting earnings of three cents per share on revenue of $760.6 million.

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. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."

GRPN Chart GRPN data by YCharts

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