Why Groupon Stock Fell as Much as 10.5% Today

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Shares of Groupon (GRPN -9.45%), which describes itself as a trusted local marketplace, fell sharply in morning trading on Aug. 9, losing just shy of 10% at one point over the first few hours of the day.

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After regaining some of that lost ground, the stock dipped again in the afternoon, dropping as much as 10.5% within the last hour of trading.

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The big news was the company's second-quarter 2022 earnings update, which hit the market after the close on Aug. 8. Investors were not particularly pleased.

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The first words from CEO Kedar Deshpande in Groupon's news release were both honest and disheartening

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These include cutting costs, improving the online customer experience, and increasing the use of automation.

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This isn't a materially different plan from the one that the company discussed in its first-quarter earnings release.

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That said, management reiterated its expectations for the full year, stating that it believes the company will be cash flow positive on an ongoing basis by Q4.

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Given the lack of success in the turnaround effort so far, it's not surprising that investors see this glass as half empty.

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Change is never easy or smooth. However, this quarter's update wasn't inspiring and basically shows that Groupon still has a lot of work ahead of it.