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It's worth noting that many new-ish companies can swing +/- 20% after quarterly earnings. Even bigger companies like Amazon and Google can swing up or down wildly. Sometimes they return to their original prices in a matter of days, sometimes not.

Some recent examples,

FIO: http://goo.gl/tcilJ

OCZ: http://goo.gl/Fac2O (July 10 was the call)

Zynga: http://goo.gl/GkIjU (may not recover IMO)

Anyway I don't want to make a judgement call on Groupon here, I just want to mention that this sort of thing is somewhat common and one earnings call (and stock price drop) alone doesn't spell death for the company. I'd be more worried if it was a gradual but consistent 27% decline than a day-after-earnings 27% decline.



"I'd be more worried if it was a gradual but consistent 27% decline than a day-after-earnings 27% decline."

Why not both? http://www.google.com/finance?chdnp=1&chdd=1&chds=1&...


> I'd be more worried if it was a gradual but consistent 27% decline than a day-after-earnings 27% decline.

How about a gradual and consistent 80% decline? That's GRPN since IPO.


Don't catch a falling knife.




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