Northern, WI 4/2/12 (StreetBeat) -- Shares of Groupon (Nasdaq: GRPN) retreated 13% Monday morning as Wall Street expresses displeasure at the daily deals company’s latest accounting headache.Late Friday, Chicago-based Groupon, which went public last year, said it needs to slash its fourth-quarter revenue outlook and deepen its net loss view due to higher-than-expected refunds.
Groupon, which has publicly clashed with the Securities and Exchange Commission over its financial metrics in the past, also disclosed it has a “material weakness” in internal controls over its financial statements.
In the wake of those announcements, a slew of shareholder-rights lawyers announced investigations into Groupon and some analysts released negative research notes.
Bank of America Merrill Lynch (NYSE: BAC) downgraded Groupon to “neutral” from “buy,” while Stifel Nicolaus cut the stock to “sell” from “hold.” Evercore Partners trimmed its price target to $20 from $28, maintaining an “equal weight” rating.
Groupon had to lower its quarterly revenue by $14.3 million and its operating income by $30 million.
Shares of Groupon dropped 13% to $15.99 Monday morning, putting them on pace to add to their 2012 slide of 11%.
Please contact www.thestreetbeat.com for interest in our latest investor relations platform the “CEO Interview Series” with its host Steve Kanaval. The package includes a one-on-one interview with a seasoned industry professional; published segment to our web site with embedded audio/video file; and a compressed file that can be easily e-mailed out to your current and/or potential investors. Please e-mail bflautt@gmail.com or call (662) 392-0740 for pricing and scheduling.
StreetBeat Disclaimer
No comments:
Post a Comment