Daily-deals provider Groupon has watched its shares plummet as the weak European market scares investors away.
The company's shares hit an all-time low yesterday of $7.72 before eventually climbing back to end the day at $7.77. According to analysts, who spoke with Reuters recently, Groupon derives a large portion of its revenue from Europe, and continued softness in that market is driving many investors away.
Groupon went public last year at $20 per share. Soon after,. However, they rebounded earlier this year, making some wonder if the worst was behind it. Since then, the company's shares have fallen off a cliff, and are down 70 percent since the IPO.
That said, analysts aren't necessarily convinced that things will stay this way for long. According to data from MarketWatch, 23 analysts have an average 12-month price target of $17.76. In addition, 20 of those analysts have either recommended investors buy Groupon or hold on to its shares.