Fizzling Daily Deals Hurts Amazon's Bottom Line
In line with the waning of the daily deals craze, Amazon has blamed its poor earnings report on its investment in Living Social.
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Groupon's stock is down over 20 percent in after-hours trading after an earnings report that not only missed analyst expectations, reporting $683 million in revenue compared to an expected $640 million, but also posted a dismal forecast for next quarter.
In line with the waning of the daily deals craze, Amazon has blamed its poor earnings report on its investment in Living Social.
Working at Groupon doesn't offer the fun or money it once promised, so it's no surprise that its sales people are looking for new jobs, as The Wall Street Journal's Shira Ovide reports.
After Groupon said it did not put a Washington, D.C. waffle-maker out of business, the waffle-maker has done a line-by-line take down of that very suggestion, putting the two in a he-said, she-said standoff.
Groupon has elicited gripes from businesses who do deals with the site about how long it takes to get paid, but now a waffle emporium in D.C. claims that the three-month wait for money from Groupon has put it out of business... three months after it opened.
Even after the first daily-deals bubble exploded, ending with Groupon's less than stellar IPO, we're seeing a resurgence in the once-trendy Internet money making scheme.
Due to over 60 complaints investigated by Britain's Advertising and Standard's Authority the Office of Fair Trading has told Groupon to clean its practices up while it keeps a watchful eye.
On Tuesday, Groupon's stock fell 19 percent, hovering just above its original $20-a-share price of the company's recent $805 million IPO, starting the morning at $20.03; today the daily deal site's stock is down further to around $17 per share.
Groupon might be inflating prices to sweeten up sales
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