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Groupon Inc. (Nasdaq: GRPN) slumped 17% in trading today (Monday) on news that it had to revise last quarter's financials, causing critics to worry that the new JOBS Act would lead to more faulty IPOs this year.
Groupon Stock Price History
Groupon announced Friday it had a "material weakness" in financial controls. That led the company to revise its fourth-quarter financial results to reflect an increase in its "refund reserve accrual."
The results? Quarterly revenue fell by $14.3 million and net income slipped $22.6 million, or 4 cents a share.
Groupon already turned off investors this year when a dismal earnings report – the first since the company went public – came in below expectations. The latest misstep cost the company yet again.
Groupon shares ended the day at $15.27 a share, down 26% for the year and 24% below its IPO price of $20.
Perhaps Money Morning Chief Investment Strategist Keith Fitz-Gerald said it best: "This company is a train wreck."