Shares of Groupon (NASDAQ: GRPN) are down sharply for a second day, and have reached the lowest level since the firm’s IPO. The stock traded at $20.25 down 14%.
MarketWatch reviewed the corporation’s business model and reported “Groupon has shown it is capable of getting far bigger revenue by going after that same small-business market, but many of the customers its deals attract are value-conscious customers who don’t revisit the small business again, unless it is with another coupon. That aspect, plus its intensive use of cash, has called its business model into question.”
