Groupon's Shares Plummet On Weak Outlook

With Rich Williams as the new CEO, the company aims to undertake a series of bold measures, such as significantly raising marketing investments, restructuring international portfolio, and moving away from certain low-margin goods businesses. In our view, these strategy changes will not only significantly weigh on both top-line and bottom-line results in the coming quarters, but they also raise doubts about the sustainability of the company's business model. We think that apart from marketing, Gr...