Why Local Marketplace Groupon Shares Are Tanking Today
Portfolio Pulse from Lekha Gupta
Groupon Inc reported Q3 FY23 revenue of $126.5 million, missing the consensus of $129.6 million. North America and International revenues decreased due to a decline in engagement on the platform. Adjusted EPS loss of $(0.12) missed the consensus of $0.11. The company plans to raise around $100 million through equity rights offering and non-core asset sales. Groupon's co-founder Eric Lefkofsky is set to resign from the board. Following the news, Groupon shares traded lower by 32.27%.
November 10, 2023 | 11:07 am
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NEGATIVE IMPACT
Groupon's Q3 FY23 results missed estimates, leading to a significant drop in its share price. The company's plan to raise funds and the upcoming resignation of co-founder Eric Lefkofsky could further impact the stock.
Groupon's lower than expected Q3 FY23 results have negatively impacted its stock price. The company's plan to raise funds indicates potential financial instability, which could further depress the stock. Additionally, the resignation of co-founder Eric Lefkofsky could lead to uncertainty about the company's future direction, potentially causing further stock price volatility.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100