The weak European economy contributed to lower sales growth than expected at Groupon Inc., particularly for discretionary items such as laser hair removal and luxury hotel stays.
Although the online deals site beat Wall Street’s profit estimates in the latest quarter, its stock tanked because of concerns about its growth prospects. Groupon gets more than half of its revenue from outside of North America, and most of that comes from Europe, where economic worries are affecting sales. Shares fell 20 percent to $6.02 in after-hours trading.
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