No relief for battered Groupon after 3Q results

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Associated Press

Posted on November 9, 2012 at 10:00 AM

Updated Friday, Nov 9 at 2:02 PM

NEW YORK (AP) — Groupon's stock has hit a new low after the online deals company's third-quarter results showed slowing revenue growth and an ongoing decline of its core business.

The Chicago-based company's stock is down $1.10, or 28.1 percent, at $2.82 in late morning trading. Earlier, the stock hit its lowest point ever, $2.77. Groupon Inc. went public in November 2011 at a price of $20.

The company blamed the economic weakness in Europe for a revenue shortfall in the July-September quarter.

Groupon says that its "goods" business, which sells physical products rather than restaurant coupons and the like, is growing. But analysts say this is a much less profitable business than the daily deals segment.

Benchmark's Daniel Kurnos sees Groupon's cash flow declining into 2014 as the company invests in long-term growth.

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