Fiscal cliff may be among the newest entries into the modern American political and economic lexicon, but it’s a reference few are experiencing as intimately as Groupon right now.
On Thursday, the company’s latest earnings report pointed to a dismal season of sales for the once-mighty digital discount titan.
As a result, shares of Groupon plunged nearly one-third of their value on Friday.
Groupon’s stock has now plunged 89% since going public one year ago.
“Groupon faces real challenges in trying to figure out what the real value of their business proposition is,” Ascendiant Capital Markets analyst Edward Woo tells CNN. “They’re trying to be an online retailer, an e-commerce company. It’s a wide vision, and people have to have a lot of faith. But recent execution isn’t giving people a reason to have faith.”
But according to Groupon, all hope is not lost.
“Our solid performance in North America was offset by continued challenges in Europe,” said Andrew Mason, CEO of Groupon. “Groupon Goods has evolved into a second major category that our customers clearly love. With deals on everything from designer sunglasses to big-screen televisions to most-wanted toys, we think it will be a great gifting destination this holiday season.”
So… do you still have faith in Groupon? Please weigh in with a thought or comment below.