Groupon (NASDAQ: GRPN) hit an all-time low of $7.72 yesterday. CNBC points out that part of the cause was the online coupon company’s exposure in Europe. The observation may be the first of many worries that Internet firms are not close to immune to Europe’s problems.
Admittedly, Groupon’s trouble in the United States is also severe. Amazon.com (NASDAQ: AMZN) and several bricks-and-mortar retailers have started to offer online coupon specials that have eroded whatever moat Groupon had around its business. But many investors expect that earnings from companies in the social media industry, particularly Facebook (NASDAQ: FB) and LinkedIn (NYSE: LNKD) rely almost exclusive on business conditions in their home market. Ironically, each of these firms has made a push overseas to increase revenue. It just so happens that these pushes have run into the deeply damaged national economies in Europe.
Douglas A. McIntyre