Groupon’s stock price has taken a beating lately, and when it closed today at $8.95, the company’s valuation dropped to a mere $5.78 billion. That’s less than Google reportedly offered for the company in 2010.
At the time, rumors had it that Groupon was making $2 billion per year in revenue, so it spurned Google’s $6 billion offer as too chintzy.
Now, however, we know that $2 billion figure wasn’t exactly correct. In fact, the company booked about $312 million in revenue in 2010, and $1.61 billion in 2011. While it shows substantial gross profits, the company is actually generating net losses.
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While Groupon’s stock slide dates back to February, the most recent drop began on Friday, when the six-month lockup period after the company’s initial public offering expired, allowing employees to start selling their stock for the first time. The stock shed $1 in value that day, to $9.70, and has lost nearly another $1 in value today, a drop of 15.8 percent in just two days.
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