Groupon’s stock has fallen around 20% in after hours trading because the company missed estimates in Q2 earnings. Groupon’s stock has hit a low of $5.95 per share, but now it is at $6.06. Groupon announced $568.3 million in revenue, but Wall Street analysts expected around $573.13 million.
Groupon CEO Andrew Mason believes that the lower revenues was due to their European performance. The company expects to hit between $580 and $620 million in revenue and an operating income of between $45 and $65 million. Both of the estimates are lower than what Wall Street analysts are expecting.
Another major reason for the drop in revenue is because the sale of each daily deal has dropped. The gross billings was $1.29 billion this quarter and was $60 million less than its first quarter of $1.35 billion. Groupon’s shares had closed up 1% today at $7.55 per share before the after hours drive.