Groupon Bankruptcy Unlikely

Jul 12, 2012

As trading ended on July 11, 2012, Groupon closed at an all time low of $7.77 a share and its overall worth is roughly a third of what it was on the day the company went public. According to All Things D, bankruptcy is not one of the reasons why. The online coupon seller is still operating with a positive cash flow and also has $1.2 billion in cash.

Bankruptcy rumors being floated by CNBC and have not helped the company stock, nor has the weakened economy in Europe, where Groupon gets a quarter of its revenue. Comparing the first quarter of 2011 and first quarter of 2012, the company's revenue grew 33% and it looks to grow during the second quarter as well. Groupon's second quarter results will be released in late July or early August.