After Groupon debuted on the public stock market at $20 per share, the somehwat controversial daily deals company surprised critics by growing its share price to a peak of $26. However, reality eventually sunk in: in the past three months, GRPN shares have plummeted more than 60%, reaching a low in the single digits last week before modest gains today placed the shares back above $10—still merely half of what the group buying company debuted at.
Even so, CEO Andrew Mason wrote a letter to shareholders noting that he sees "enormous opportunity" in Groupon's future. In particular, that opportunity appears to lie in mobile.
Last month, 30% of transactions in North America were completed on mobile phones. This is up from 25% four months ago, Groupon says. And the typical mobile customer spends 50% more than customers who never purchase on phones, the company notes.
Still, there are plenty of reasons for investors to remain wary. The company reported a "material weakness" in financial controls in March and posted revenue below expectations—big red flags for a freshly public company that's supposed to still be in rapid-growth mode. Not to mention the fact that CNCB's Herb Greenberg recently hinted at Andrew as a potential candidate for 2012's worst CEO.