Why Groupon Stock Fell Last Week



Stock fell over 8% last week

Online tech (QQQ) firm Groupon (GRPN) fell over 8% in the week ended July 21, 2017, and closed at $3.65. There was no catalyst or news surrounding the price drop. The stock has risen almost 10% in 2017 after generating returns of 8% in 2016. Groupon is now trading 25% above its 52-week low of $2.9 and 38% below its 52-week high of $5.94.

Groupon stock fell over 20% in May this year driven by disappointing 1Q17 results. In 1Q17, Groupon reported revenue of $673.6 million, indicating a fall of 3.6% YoY (year-over-year). Analysts estimated revenue of $724.4 million in 1Q17. Groupon is expected to announce 2Q17 results on August 2, 2017, and analysts expect the firm to post revenue of $669.98 million with EPS of $0.00. In 2Q16, Groupon reported revenue of $750 million.

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Can Groupon continue to increase global customers in 2Q17?

At the end of 1Q17, Groupon served 48.3 million users worldwide compared to 44.2 million global active users in 1Q16. 66% of Groupon users, or over 32 million, live in North America. The chart above shows how Groupon’s user base has changed in the past few quarters.


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