Groupon shares hammered after fresh losses
NEW YORK (AFP) - Groupon shares took a nosedive on Wednesday after the online deals giant surprised markets by reporting fresh losses in the past quarter and a weaker-than-expected outlook.
Shares plunged 24 per cent to US$4.53 in after-hours trade after the Chicago-based firm reported a loss of US$81 million in the fourth quarter, and a US$67 million dollar deficit for the full year.
The loss translated to 12 cents per share in the quarter, compared with expectations of a profit of three cents a share.
With the daily deals sector fading fast after last year's optimism, Groupon also offered a weak revenue outlook of US$560 million to US$610 million, well below market expectations of US$650 million.