/// Hangin’ Tough: Groupon’s Stock Closes in Single Digits for First Time

May 4, 2012  |  All Things Digital


Selling a pair of tickets to see New Kids on the Block for $10,000 today didn’t stop Groupon’s stock from closing below $10 a share. The daily deal company’s shares slid 3.3 percent, or 34 cents, to settle at $9.97 a share today, marking the first time its stock closed in single digits. At that price, the company’s value hovers around $6.4 billion, which is getting uncomfortably close to Google’s $6 billion buyout offer that the Chicago company turned down in late 2010. Groupon has been unable to regain investor confidence since revising its fourth-quarter results at the end of March despite putting out a string of press releases. Over the past couple of weeks, it has hired a new SVP, Kal Raman,  and appointed two new directors  with accounting expertise. Today, it sold a package that included a pair of tickets to see New Kids on the Block, a ride on a roller coaster with the teen heartthrobs and round-trip airfare, among other activities, for $10,000, or roughly half off. Now Groupon is also half off its IPO price six months ago. (I’m pretty sure the NKOTB’s lyrics “Hangin’ Tough” can apply.) At less than $10 a share, Groupon’s stock is trading 50 percent below its IPO price of $20 a share. For CEO Andrew Mason, it means watching his shares decrease from $1.3 billion at the stock’s peak on day one to roughly $470 million today. GRPN data by YCharts

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Hangin’ Tough: Groupon’s Stock Closes in Single Digits for First Time



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