Shares of online deal site Groupon dipped to a record low after the company reported second quarter revenue with mixed results. In reaction to the numbers, investors responded by sending Groupon's stock price down 15 percent in after hours trading. Groupon's stock is currently trading at $5.56, down more than 26 percent compared its closing price of $7.55 on Monday.
Groupon reported year-over-year revenue growth of 45 percent to $568.3 million in the second quarter of 2012. Not too shabby, except for the fact that analysts were estimating revenue of $575.3 million, according to Bloomberg . More startling for investors is the fact that Groupon's Q2 billings, which is the total value of merchandise sold to customers (minus expected returns) fell 5 percent sequentially.
"We had a solid quarter despite challenges in Europe and continued investment in technology and infrastructure," said Andrew Mason , CEO of Groupon. "We've deepened our relationships with a growing base of merchants and customers worldwide, demonstrating progress as we work to unlock the opportunity in local commerce."
Groupon's plummeting stock price despite a growth in revenue underscores how fickle investors can be when it comes to investing in online companies, especially at the first sight of any red flags. Business Insider breaks down how, in this specific instance, the fixation on Groupon's billings was enough to beat the company's share price over the head with a club.