Poll: Do you use online discount services like Groupon?

Do you use online discount services like Groupon?

View Results

Loading ... Loading ...

Groupon plunged 30 percent before Thursday's opening bell, after posting a larger-than-expected fourth quarter net loss.

The company issued a weaker-than-expected revenue guidance, feeding the belief of some on Wall Street that people have tired of the myriad of online restaurant, spa and Botox deals that Groupon offers.

The company says it focused on growth at the cost of some profitability by offering better deals to top merchants in a bid to expand offerings to customers. That boosted demand along with market share and helped spur bookings growth, though at the expense of revenue, Groupon said.

Gross billings, a closely watched figure that shows the total amount that customers spent on Groupon's deals, increased 24 percent in the quarter to $1.52 billion.

Sterne Agee analyst, Arvind Bhatia, said that while the quarterly results and guidance are disappointing, he still thinks the stock has long-term investment potential. He backed his "buy" rating and $9 price target.

Bhatia pointed to the jump in billings as a sign of improvement and said the first-quarter guidance implies a gradual profit recovery.

Other analysts were less optimistic. Jefferies analyst, Brian Pitz, called the earnings and guidance disappointing and stuck to his "hold" rating and $4 price target for the stock. Susquehanna's Deepak Mathivanan reiterated a "neutral" rating and $4 price target.

Shares of Groupon Inc. fell $1.77 to $4.21 in pre-market trading.(AP News)

4 thoughts on “Poll: Do you use online discount services like Groupon?

  1. coupons, groupons, ponzi, all the same, reminds me of the only place i know you can write a check with zero balance in your account, washington d.c., a bunch of groupies up there.

  2. when l went for a facial withmy coupon - l had a stand up fight with the owner of the salon - who first of all was an hour late
    for the appointment- then made me feel like a scrounger that l was using a coupon- inthe end l could'nt be bothered
    and walked out

  3. When you get a manicure and pedicure coupon. And you live 50 minutes away from the city. You get there you can only have one then you have to come back the next day to get the other. No needs it. Bait and switch. Not worth the effort. Always get there with your deal..and it is this, that and the other. Why don't they provide what the coupon states.

Comments are closed.