Groupon Stock Price Drops Below $17

The stock price of Groupon Inc (NASDAQ:GRPN) has dropped consecutively for three days this past week. Groupon opened at $20 per share and it closed yesterday at $16.96. So why is Groupon’s stock dropping?

Investors are worried that Groupon’s profit margins are being squeezed due to increases in marketing costs. LivingSocial.com is also growing at a rapid pace with Amazon.com’s full backing. The European credit crisis is worsening, which would also effect Groupon’s international initiatives.

Groupon is not the only Internet company that has taken a beating on the public markets. Demand Media went public at $17 and is now trading at $6.85. Pandora went public at $16 and is now trading at $10.51. Renren went public at $14 and is now trading at $3.75. Yandex went public at $25 and is now trading at $20.05.

[New York Times]

Related posts:

1. Pandora Stock Price Increases 60% After Opening, Closes At 9% High
2. Glitch Hits Intel and Oracle Stock, After Hours Stock Price Showing About -50% [Updated]
3. Sony PlayStation 3 Price Drops To $300 After Release Of Slim Version
4. Zipcar Stock Price Increases 56% On First Day Of Trading
5. Nintendo Drops Price Of 3DS To $169.99