Hangin’ Tough: Groupon’s Stock Closes in Single Digits for First Time

Selling a pair of tickets to see New Kids on the Block for $10,000 today didn’t stop Groupon’s stock from closing below $10 a share.

The daily deal company’s shares slid 3.3 percent, or 34 cents, to settle at $9.97 a share today, marking the first time its stock closed in single digits.

At that price, the company’s value hovers around $6.4 billion, which is getting uncomfortably close to Google’s $6 billion buyout offer that the Chicago company turned down in late 2010.

Groupon has been unable to regain investor confidence since revising its fourth-quarter results at the end of March despite putting out a string of press releases. Over the past couple of weeks, it has hired a new SVP, Kal Raman, and appointed two new directors with accounting expertise.

Today, it sold a package that included a pair of tickets to see New Kids on the Block, a ride on a roller coaster with the teen heartthrobs and round-trip airfare, among other activities, for $10,000, or roughly half off.

Now Groupon is also half off. (I’m pretty sure the NKOTB’s lyrics “Hangin’ Tough” can apply.)

At less than $10 a share, Groupon’s stock is 50 percent below its IPO price of $20 a share.

For CEO Andrew Mason, it means watching his shares decrease from $1.3 billion at the stock’s peak on day one to roughly $470 million today.

GRPN Chart

GRPN data by YCharts

Latest Video

View all videos »

Search »

I think the NSA has a job to do and we need the NSA. But as (physicist) Robert Oppenheimer said, “When you see something that is technically sweet, you go ahead and do it and argue about what to do about it only after you’ve had your technical success. That is the way it was with the atomic bomb.”

— Phil Zimmerman, PGP inventor and Silent Circle co-founder, in an interview with Om Malik