Groupon Inc (GRPN)

Groupon, Inc. Stock (GRPN) dropped by 34.82% from $13.54 to $8.83 in the trading on Friday November 10, 2023. The reasons why GRPN stock down today include:

• Q3 financial results: Groupon saw its revenue fall 12% year over year to $126.5 million, missing the $127.41 million consensus forecast. Its loss per share for the period of $1.31, meanwhile, fell far short of the $0.03 per share deficit expected by Wall Street.
• Rights offering: Groupon announced that its board has approved an $80 million fully backstopped rights offering for shareholders. The announcement appears to be providing the crux of the issue for investors, causing GRPN stock down today.

Shares of Groupon Inc (GRPN) dropped by 35.03% from $15.20 to $9.88 in the trading on Tuesday, October 10, 2023. The reason why GRPN stock down is due to the company's decision to sell a portion of its stake in SumUp at a valuation that was 50% below initial expectations. In detail, Groupon sold 9.4% of its stake in SumUp at a lower-than-expected price, signaling SumUp's value at $4.1 billion, a stark drop from $8.5 billion in June 2022. Groupon's remaining stake is now worth $94 million, causing nearly a $100 million loss and impacting its market capitalization, which currently stands at $360 million. Groupon faces financial challenges, highlighted by a "going concern" warning, and aims to improve liquidity through this sale. The devaluation mirrors a broader trend in the fintech industry. This move had a negative impact on Groupon's stock price.