Daily-deals site Groupon (NASDAQ:GRPN) went public in November, and after a first-day return of 31%, things couldn’t have looked more promising.
And for the most part, Groupon never did look more promising.
Since late November, the company has been toxic for shareholders, with GRPN shares down 70% in their short lives.
There was ample warning from the start. Groupon had to restate its revenues for the first half of 2011 — from $1.52 billion to just $688.1 million — before it even came public, as the SEC thought it was misleading to include the full value of its vouchers. Then in April, Groupon made another boo-boo and had to issue another restatement, this time for Q4, and again dealing with the vouchers.
Plus, other Wall Street worries have persisted. There’s hundreds of competitors in the space, it’s unclear whether merchants are getting repeat business, and Groupon continues to spend big on marketing.
All those problems have conspired to send Groupon into a tailspin since last fall — and unfortunately for investors, GRPN hasn’t been alone. Here’s a look at four other big-name companies that have absolutely fallen on their faces in roughly the same time frame: