Perhaps Wall Street is listening to Main Street after all.
Daily deals site Groupon, which went public in early November , is seeing its stock price tumble after a recent report found that most business owners who previously offered a daily deal have no plans to do so again in the next six months.
Groupon's stock slipped 9.1 percent in the two days of trading following the report's release on Tuesday. That's Groupon's largest two-day drop since it went public, excluding a rough week in late November, signaling that Main Street's concerns over the daily-deals model continue to weaken public investors' demand for the industry leader's shares.
The study, by Susquehanna Financial Group and daily-deal aggregator Yipit, found that merchants were most concerned about how much deal sites require participating vendors to discount their goods, as well as the low rate of repeat business gained from consumers who purchased the offers.
As such, 52 percent of merchants said they had no plans to offer a daily deal in the next six months, and 24 percent intend to feature only one deal during the same period.
As for the market's harsh reaction to the survey, which collected data from only 100 merchants, "it's almost as if investors were looking for a reason to dump the [Groupon] stock," All Things Digital's Tricia Duryee noted, citing that the study was largely positive.Page 1 of 2 | Next Page