Groupon Inc. (Nasdaq:GRPN) saw shares in the company drop by nearly a quarter of their total value Tuesday -- to all-time lows -- after the Chicago-based daily-deals business reported revenue figures that badly missed analyst expectations.
Prior to the beginning of trading Groupon had reported its first profit as a public company on revenue increases of 45 percent from a year-earlier period.
For the period ended June 30, Groupon posted net income of $28.4 million, or 4 cents a share, compared with a loss of $107.4 million, or 35 cents a share, in the second quarter of 2011. Revenue increased to $568.3 million from $392.6 million.
But as impressive as those figures sound, the market focused on the low quarter-to-quarter sales growth of just 2 percent and decrease in total billings.
Wall Street sold off on the news, sending Groupon's market valuation tumbling. The stock now trades over 79 percent off from their $28 price when shares were initially offered to the public earlier this year.
"There's concern that daily deal fatigue is setting in," Evercore Partners analyst Ken Sena told The Wall Street Journal.
Shares of Groupon, Inc. -- after falling more than 23 percent -- recently traded for $5.92, down $1.63 or 21.59 percent, from the previous day's close in automatic action on the Nasdaq board.