Published Dec 04, 2023 08:45AM ET
CHICAGO – Groupon (NASDAQ:) Inc. has come under scrutiny after its third-quarter financial performance disappointed investors, leading to a significant drop in its stock value. The e-commerce marketplace, known for offering discounts and deals, reported weaker-than-expected results last month on November 9.
The following day, the company’s stock price plunged tumbled by $4.72 to $8.82, marking a sharp 35% decrease from the previous close as trading volumes surged. This steep decline has raised concerns among shareholders and has prompted legal action.
Kaskela Law LLC, a firm specializing in securities fraud and corporate governance litigation, has announced an investigation into potential misconduct by Groupon’s leadership. The law firm is reaching out to investors who have been affected by the stock’s performance to discuss their legal rights.
Amid the challenges faced by Groupon Inc ., the company’s financial health and stock performance have become focal points for investors. According to InvestingPro, Groupon’s market capitalization stands at a modest $379.06 million, reflecting the market’s current valuation of the company. Despite an impressive gross profit margin of 87.08% over the last twelve months as of Q3 2023, the company’s revenue has declined by 22.06% in the same period. This contraction in revenue, coupled with the company’s inability to generate a profit with a P/E ratio of -2.70, underscores the financial difficulties Groupon is facing.
InvestingPro Tips suggest that Groupon may have trouble making interest payments on its debt, and its short-term obligations exceed its liquid assets, indicating potential liquidity issues. Additionally, analysts do not anticipate the company will be profitable this year, which may further dampen investor confidence. However, it’s worth noting that the stock has experienced a significant return over the last week, with a price total return of 11.74%, hinting at some investor optimism amidst the turmoil.
For those looking to delve deeper into Groupon’s financials and future prospects, InvestingPro offers a comprehensive list of over 14 additional tips to guide investment decisions. Moreover, the InvestingPro subscription is now available at a special Cyber Monday sale, with discounts of up to 60%. To take advantage of an additional 10% off a 2-year InvestingPro+ subscription, use coupon code sfy23 at checkout.
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