Revenue declined -42% y/y to $153.2 million, missing Wall Street's expectations of $156.8 million (-41% y/y). Groupon Q2 results (Groupon Q2 earnings deck) Take a look at the Q2 earnings summary below: Let's start with the elephant in the room: Groupon isn't getting any more popular with the general population, and its results show it plainly. Q2 shows an ugly picture that is only getting uglier It's time to discard this stock and move on. We'll discuss Groupon's Q2 earnings in the next section, but the bottom line here: I don't see any near-term or longer-term catalysts that can restore this business to anywhere near its former heights. The business continues to decline, and gross profit dollars shrink faster than opex savings.Cost cuts don't end up generating as much in run-rate savings as the company originally intended, with offsetting inflationary/wage pressures weighing against the expense reductions created by layoffs.This is a company whose entire turnaround plan rests on cost-cuts - which exposes it to two major risks: I turned bearish on Groupon following its Q1 earnings release, and unfortunately it seems the deterioration in Groupon's fundamentals continue to only get worse with each passing quarter. The pain, unfortunately, doesn't seem to have a light at the end of the tunnel. And since reporting Q2 earnings in early August, the stock has cut ~25% alone. Year to date, Groupon has lost more than 60% of its value. The once-popular local deals site has seen a huge diminishing interest for its website, and it's struggling to maintain relevance in a post-COVID world. No one has the patience for a turnaround story these days either, and unfortunately that is what Groupon ( NASDAQ: GRPN) is. The safest, strongest stocks are holding onto their value, while more speculative and smaller growth stocks are rapidly losing the majority of their remaining value. With volatility returning in a big way as investors assess the impacts of potential rate hikes on growth stocks, today's market is all about high quality. We've all heard the common adage that "everybody loves an underdog." Well, this isn't true in today's market.
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