Groupon Inc., online shopping giant, on Monday published its quarterly profit as its shares dropped by nearly 20 percent due to revenue miss and investors’ concern over growth in the next months. Groupon’s shares lost almost a fifth of their value because revenue missed estimates due to economic situation in Europe. Although the company’s second-quarter earnings doubled expectation, shareholders concentrated on revenue miss and punished the stock.
A group of shareholders seem to have put forward a 256.1 billion pound or $400 million financing deal in favour of Knight Capital Group Inc. and the latter looks all set to deal the deal which will provide the trading firm with the opportunity to get back into business after it sustained a harsh blow in the form of a economic loss amounting to $440 million. However, sources who are aware of the situation commented that the deal might prove to be too dear to the investors.
UBS, the Swiss banking giant, informed that it lost $357 million on the Facebook’s catastrophic debut. The bank said it bought more shares than it planned because of NASDAQ’s trading snags. UBS accused NASDQ of a “gross mishandling” of the stock-market listing. It is likely that UBS will take steps to begin legal proceedings to recoup all of its losses. The total sum of $357 million dwarfs the $62 million NASDAQ has in case problems related to Facebook’s deal.
The Commerce Department said Monday that there was 0.8 percent rise noticed in retail sales increased 0.8 percent, after rising 1.0 percent in February. Some of the increase went to higher gas prices. U.S. Consumer spending accounts for more than two-third of its economic activity.
Stocks fell leading S&P end its worst week of the year as growing pressure on Europe’s debt markets revitalized concerns about the region’s financial stability. The Dow Jones industrial average and Standard & Poor’s 500-stock index dropped, falling for a third straight day.
An optimistic report on U.S. manufacturing surpassed anxiety about fragile global growth and lifted stocks to multiyear highs. The gain built on the best first quarter for stocks in more than a decade.U.S. stocks and European stocks were slightly tilted on a negative side but managed to rise after the ISM report.
Friday saw a slightly higher opening of U.S. stocks, the final trading day of a strong quarter, as investors hope for some positive economic reports after a disappointing stretch of data.
After the European markets closing sharply high, the investors hope that the European Leaders will come to an agreement on a package with measures addressing the entire region’s debt crisis. They are meeting for a summit which is going to be held on the coming Wednesday. With DAX Germany rising to 3.6 percent, CAC France rising to 4.0 percent and FTSE MIB Italy rising 2.8 percent, it seems that the hope wave is catching speed.