LOS ANGELES (AP) — Groupon's stock is about 26 percent cheaper, but that doesn't make it a bargain.
Its stock fell Tuesday as analysts slashed targets and ratings on the online deals company after it reported its first-ever quarter-to-quarter decline in gross billings, a measure of how much money Groupon Inc. collects from customers.
Groupon blamed the weak economy in Europe and unfavorable currency-exchange rates.
But analysts pointed to a more troubling possibility: online deals fatigue.
Clayton Moran, an analyst with Benchmark Capital, slashed his price target on the shares from $20 to $7 and downgraded his rating to "Hold" from "Buy."
The stock fell $1.98, or 26 percent, at $5.57 in midday trading Tuesday. That's 72 percent below its initial public offering price of $20 in November.