Continued from page 1

The Chicago-based company said it was aiming to solve some of its problems in Europe by investing to update its technology, changing its mix of promotions to lower-priced services and stepping up its own advertising to increase brand awareness.

Those investments were also questioned.

Mark Mahaney, an analyst with Citi Research, cut his price target on shares to $9 from $19, and downgraded them to “Neutral” from “Buy.”

“The (return on investment) and timing of necessary platform investments won’t be known for some time,” he wrote in a research note Tuesday. “And this management team doesn’t yet have an execution track record. And in the meantime, the core Daily Deals business is sharply slowing.”