Groupon's stock hits new low after 3rd-quarter results show revenue growth slowing

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NEW YORK, N.Y. - Groupon's stock has hit a new low after the online deals company's third-quarter results showed slowing revenue growth and an ongoing decline of its core business.

The stock is down $1.10, or 28.1 per cent, at $2.82 in late morning trading. Earlier, the stock hit its lowest point ever, $2.77. Groupon Inc. went public in November 2011 at a price of $20.

The Chicago-based company blamed the economic weakness in Europe for a revenue shortfall in the July-September quarter.

Groupon says that its "goods" business, which sells physical products rather than restaurant coupons and the like, is growing. But analysts say this is a much less profitable business than the daily deals segment.

Benchmark's Daniel Kurnos sees Groupon's cash flow declining into 2014 as the company invests in long-term growth.

Organizations: Groupon

Geographic location: NEW YORK, N.Y., Europe

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