Internet crazes come and go, end of story. Do you recall logging into Facebook every day to check your farm? Dare I mention the once booming MySpace or Xanga?
It seems like every newest fad hits viral, only to come spiraling down after users move on to the next best. It seems that daily deals companies such as Groupon and LivingSocial have now fallen victim to this dreaded cycle.
Groupon, the deal-of-the-day website that features discounted gift certificates usable at local and national companies, has failed to reach revenue expectations more than once.
The most recent falter was on Wednesday, February 27th. Groupon missed earning estimates for the last quarter and its outlook for the next quarter was also lower than analysts expected, sending the stock down as much as 27% in after-hours trading.