Groupon stock plunges on growth worries

Filed under: Daily News |

Groupon had a lot to prove with its first earnings report as a public company. The 12 percent slide in its stock Thursday suggests investors wanted more.

The online deals site on Wednesday reported sharply higher fourth-quarter revenue that surpassed Wall Street’s expectations.

But some analysts worry about the trajectory suggested by the company’s revenue forecast of $510 million to $550 million for the current quarter. The guidance indicates that Groupon expects revenue to grow just 5 percent quarter-over-quarter. This suggests growth is slowing down, says Collins Stewart analyst Mayuresh Masurekar.

Many analysts say Groupon’s latest was a solid quarter, though several say it’s not the right time to buy more stock. The Chicago-based company needs to show it can keep growing fast.