Groupon Stock Plunges to New Low

80 workers laid off as firm faces trouble in Europe

By Matt Cantor,  Newser Staff

Posted Nov 9, 2012 5:10 AM CST

(Newser) – Saddled by weak performance in Europe, Groupon's struggles continue: Its shares dropped to $3.25 in after-hours trading yesterday, sinking below analysts' already muted expectations. The plunge marked a 17% drop from its $3.92 closing price. Since its IPO, the company has lost four-fifths of its value, Reuters notes. Seeking a leaner operation, the company yesterday said it had laid off some 80 employees.

The company's third-quarter revenue was $568.6 million, below analysts' expectations of $590 million; it saw a quarterly net loss of $3 million, compared to a loss of $54.2 million in the third quarter of last year. North American revenue climbed 80% to $292 million, but in Europe, where the company cites "continued challenges," it climbed just 3% to $277 million.

This Oct. 21, 2011 file photo shows the Groupon logo inside the online coupon company's offices, in Chicago.
This Oct. 21, 2011 file photo shows the Groupon logo inside the online coupon company's offices, in Chicago.   (AP Photo/Charles Rex Arbogast, File)
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