Tuesday, August 14, 2012

Groupon shares down 22 percent, despite increased sales, profit


After examining Groupon's second-quarter financial report yesterday, showing increased revenue and a profit, some might think that the company is on the right track. Judging by investor reaction, however, that doesn't appear to be the case.


In early morning trading, Groupon shares are down a whopping 22.4 percent to $5.86. At its worst point so far this morning, Groupon's stock hit an all-time low of $5.80. At its current level, Groupon shares are down 71 percent since the beginning of the year.


Groupon yesterday announced that sales in the second quarter were up 45 percent year-over-year to land at $568.3 million. And although it lost money last year, in the second quarter, it actually posted a profit of $28.4 million.


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