Groupon, the pioneer in subscription-based online deals, has investors wondering if it can keep the upward climb going when it comes to growth. The 4-year-old company has lost momentum, making it hard for the premiere online deals service to keep its top spot.
Groupon’s shares fell below $3 for the first time on Thursday. Last year, the company lost $54.2 million, or 18 cent per share. CEO Andrew Mason said weakness in Europe counteracted the Chicago-based company’s “solid performance in North Americaâ€ in the third quarter of this year, according to the Associated Press.
At the company’s peak in 2010, Google was rumored to be willing to pay $6 billion to purchase Groupon. But since going public last November at $20 per stock, the company has lost 85% of the initial value and is estimated to be at around $2.5 billion today.
Still, Groupon isn’t giving up just yet. The company’s initial success paved the way for a number of copycat sites like Living Social, Amazon Local and Google Offers and currently has 37% more users than it did a year ago with 39.5 million customers. But Groupon is fully aware it will have to make drastic changes to keep its sinking ship afloat.