Groupon (NASDAQ:GRPN) shares dropped on Wednesday to their lowest levels since going public in November, hitting $7.72. The stock fell 6.5 percent on Wednesday to close at $7.77.
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According to CNBC, comScore reported a 15 percent decline in Groupon traffic in June, at 12.25 million visitors, compared to the previous year. Shares also suffered from concerns about economic weakness in Europe, where the daily deal company gets about one-quarter of its revenue.
Analysts were worried. Citi Research’s Mark Mahaney cut his price target for the company to $19 from $22, led by a reduction in his estimate for Groupon’s 2013 earnings. Mahaney now expects Groupon to bring in EBITDA of $718 million in 2013, down from a previous estimate of about $930 million.
“European exposure in particular is an issue” for several Internet stocks, including Google (NASDAQ:GOOG), Amazon.com (NASDAQ:AMZN), eBay (NASDAQ:EBAY), LinkedIn (NYSE:LNKD), Priceline.com (NASDAQ:PCLN), and Groupon, Mahaney wrote in a note to investors.
Groupon gets about 45 percent of revenues from international businesses, including about 25 percent from Europe. “We will expect Groupon management to provide commentary related to still lingering macro-economic weakness and volatility in both the U.S. and Europe,” Mahaney added.
Groupon went public in November at $20 a share and is down about 60 percent since then.