Facebook’s IPO filing last week juiced a score of social stocks last week, including Groupon, (NASDAQ:GRPN), which saw its shares soar 22%. On Wednesday, reality bit back hard. GRPN shares plunged more than 10% in after-hours trading after Groupon flubbed its first-ever earnings report as a publicly traded company.
Revenues actually were strong, up a staggering 194% to $506.5 million, and the company reported 33 million active users.
But the growth was not cheap — Groupon sustained a loss of $42.7 million. The company continues to invest heavily in global markets and also has moved into lower-margin categories, like travel services. Read