Andre Yoskowitz
24 Nov 2011 14:02
Groupon, the daily deal giant who went public earlier this month continues to see its stock fall, with share prices now under the IPO pricing.
The company IPOd at $20 per share and the service now trades at $17 just three weeks later, showing investor jitters in a company with questionable accounting and no chance for profits.
Groupon, one of the founders of "daily deals," sites that offer highly discounted deals to local restaurants and other retailers, was launched in 2008 and is expected to see $1.5 billion in revenue this year.
While the growth is strong, the company remains unprofitable and now has competition from behemoths like Amazon and Google.
Groupon will lose over $400 million this year, mainly due to payroll for its 10,400 employees.