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Deal or no deal? Groupon under pressure

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http://www.euronews.com/ Shares of Groupon slumped over 20 percent on Tuesday after its quarterly revenue came in lower than expected and it gave a cautious profit outlook.

The company – which offers big daily discounts on local retailers’ services to millions of online subscribers – partly blamed the weak European economy.

Its shares have lost three quarters of their value since they were first floated last November.

Groupon is one of several high-profile consumer internet companies to disappoint investors after raising expectations during their market debuts. The others are Facebook and Zynga.

With Groupon’s original high-margin “daily deals” business showing signs of slowing, it has expanded into consumer product sales and merchant services, which bring lower profits.

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