Groupon restatement sparks more worries

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More recently, with products such as an online scheduling tool for local merchants, Groupon has also shown that it wants to be an e-commerce hub for small businesses.

Several analysts are giving Groupon the benefit of the doubt even as they note shareholder frustrations. Dough Anmuth of JPMorgan said he doesn’t believe the restatement shows that Groupon’s business model is weakening.

“Instead we believe they reflect Groupon’s dynamic deal mix and the company’s extremely rapid growth in a very short amount of time,” he said.

Scott Devitt of Morgan Stanley, the main underwriter for Groupon’s IPO, called the announcement a “mild hiccup in Groupon’s compelling long-term story.”

The Chicago-based company’s stock fell $3.11, or 16.9 percent, to close Monday at $15.28. The stock price is 24 percent below its IPO pricing of $20 and has traded from $14.85 to $31.14.

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