Groupon’s Stock Falls Another 6.6% Due To Merchant Dissatisfaction

Sites include Groupon.com . Published on January 9th, 2012. Written by Anthony West.

It seems Groupon is on the ropes (again) due to poor results being experienced by its participating merchants. This general discontent among merchants has led to a reported dip in share price, which at this writing is $19.27 a share—a 6.6% drop of $1.32.

The source of the stock’s troubles is a joint survey that was conducted by Susquehanna Financial Group and daily deal industry tracking firm Yipit. According to survey results, more than half of merchants enlisted with Groupon, plan to discontinue their listings—refusing it seems to bet their success on the daily deals model. The majority of those questioned indicated that there would be no engagement with Groupon for at least the next 6 months.

Now, we all know how stock and their pricing works…it’s all about the forecast and expectations. Little wonder then, that with so many merchants not willing to continue with Groupon, its share price took the kind of hit it did. This is a bloody shame, because despite the turbulent space that is daily deals, Groupon’s share price wasn’t doing too badly. In fact, expect for a slight dip in November 2011, Groupon’s share price was steady above $20.

A lot is expected to happen in 2012, not least of which a small matter of the end of the world. That may or may not happen, but Groupon’s demise looks inevitable.

Do you think Groupon will meet its end in 2012? Share your thoughts below.