Even without the Securities and Exchange Commission breathing down its neck, Groupon (Nasdaq: GRPN) has struggled since going public in November. Now that the SEC is reportedly taking a look at the online daily deals company’s books, the tech stock’s shares are approaching new lows.
The Wall Street Journal reported today that the SEC is examining Groupon’s recent revision of its first set of financial results after going public. No formal investigation has been launched, but the probe hasn’t helped Groupon’s already floundering stock.
Shares of the tech stock fell 17% and are down another tick today to $15.21 – just a shade above its all-time low of $14.85 per share, established in late November. That’s also nearly 24% below the stock’s $20 IPO price.
Groupon’s struggles have been well documented. The company has never been profitable, and its IPO price was grossly overvalued. Still, it was a big-name tech company with a popular website, so it managed to generate enough buzz to sell $700 million in its IPO – at the time the largest debut by a tech stock since Google (Nasdaq: GOOG) raised $1.7 when it went public in 2004.
It didn’t take long for Groupon to come crashing back to earth. Within four weeks, the stock had lost a quarter of its IPO price. And the company still isn’t profitable: It reported a $37 million loss in the fourth quarter.
Now that the SEC is sniffing around, investors are again being scared off from Groupon all over again.