Groupon (NASDAQ:GRPN) stock is falling on Monday after providing an update about its business on Friday.
According to that update, the company is changing up how it handles business. That includes shifting away from a primary seller to instead hosting third-party sellers on its website. This change has been in the works for some time now.
Investors don’t appear to be happy with Groupon changing how it does business. Heavy trading volume on Monday sees a total of 3.51 million shares moving as of this writing. The stock’s average trading for a full day is closer to 2.88 million shares.
With the changes to its business, Groupon notes that there will be differences in how it reports earnings. For example, the company will no longer list gross revenue and is instead switching over to net revenue.
Groupon’s news update on its business says that the process is going along smoothly. The company is currently expecting to be mostly done with the process by the end of its third quarter of 2020, reports The Motley Fool.
Groupon last reported earnings on Aug. 6, 2020. That means it will still be some time before it releases an earnings report for the third quarter of the year. As such, investors will have to wait a bit before seeing how this change will affect the company’s earnings reports.
GRPN stock was down 11.9% as of Monday afternoon.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
