The WSJ.com reported that Groupon is being investigated for unusual stock trading activity right before the company released positive financial information. The stock actually rose 18.5% percent from its previous close and trading volume was around 4 times the 30 day average just before the good news was released to the public. It is still not clear if the Securities and Exchange Commission(SEC) is going to investigate this possible corporate financial irregularity.
CNN Money is reporting that Groupon has again revised revenue figures before its IPO. Groupon has lowered its revenue for the first half of 2011 from $1.5 billion to $688 million. That’s more than half off! I guess they do offer more than just a $80 mani/pedi for $40.
Of course the mistake is quite simple. They included the money they owed their partner merchants for coupons they sold as part of their revenue. Now I’m sure some of you corporate accounting whizzes out there could make the argument that this is legit, but common sense would indicate that it is probably best they revised their numbers.
Anyone have the odds as to whether this IPO will actually happen in 2011? I’m going 2 to 1 against. But I also like to cut my own nails no matter how cheap it is for a stranger to do it.