Groupon stock slides despite quarterly profit
SAN FRANCISCO (AFP) - Online shopping deals giant Groupon on Monday posted a sound quarterly profit but saw its stock tumble nearly 20 per cent due to a disappointing forecast for the months ahead.
The Chicago-based firm reported a profit of US$28.38 million (S$35.34 million) on revenue that climbed 45 per cent to US$568.3 million in the quarter ended June 30.
"We had a solid quarter despite challenges in Europe and continued investment in technology and infrastructure," said Groupon chief executive Andrew Mason.
"We've deepened our relationships with a growing base of merchants and customers worldwide." However, investors were unhappy with revenue that was less than analysts expected and a scaled back forecast for the current quarter.