Monday, August 13, 2012

Groupon Hits Growth Wall


Groupon Inc.'s once-torrid daily deals business slowed in its latest quarter, fueling investor concerns about the onetime Web commerce star and sending shares to a new low.  The Chicago company reported its first-ever quarterly profit as a public company, on revenue that increased 45% from the year-earlier period. But gains in the second quarter were driven by Groupon Goods, a relatively new, low-margin business of selling merchandise such as jewelry or kitchen appliances.

Revenue rose just 2% sequentially from the first quarter. Second-quarter billings—the total amount of money Groupon pulls in before it pays a cut to merchants—slipped 5% in ...

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