Groupom shares slumped nearly 20% overnight as it became the latest internet company to disappoint Wall Street with lacklustre profits.
The online daily deals provider missed quarterly revenue expectations and gave a profit outlook that was cautious at best.
The stock fell 19% to $6.13, leaving them down 70% from the float price of $20 last November.
Sameet Sinha, an analyst at B Riley & Co, said: “It seems like they don’t have enough control over various aspects of their business. Will they be able to fix the situation by the end of this year? If not, we could see a very significant slowdown in growth in 2013.”
Groupon has swung into profit but weaker-than-expected revenue figures sent the voucher firm’s shares sharply lower during after-hours trading.
Profit for the three months to the end of June was $28.4 million (£18.1 million), against a loss of $107.4 million a year ago.
This year, Groupon’s issues have come to epitomise a clutch of internet and social-media companies, such as Zynga and Facebook, which debuted with much fanfare but have failed to live up to expectations.
