If you’re a social media investor, chances are Groupon has been on the radar after Starbucks CEO Howard Schultz left the Groupon board.
Shares tumbled on April 30th after the announcement.
"People were hoping they were going to augment the board rather than replace directors," said Daniel Ernst, an analyst at Hudson Square Research, who noted the loss of Starbucks' Schultz was a particular blow.
“Board members change sometimes, but very rarely do they change so soon after a company goes public,” added a seemingly skeptical Jordan Rohan, an analyst with Stifel Nicolaus.
The departure followed a tough March in which Groupon came under fire after revising its fourth-quarter financial results and admitting that there was a “material weakness” in its financial statements, just months after its initial public offering.
However, the market may be drawing the wrong conclusions.
In a live interview on CNBC’s Fast Money Halftime Report, Schultz tells says no one should read anything into his departure.
Schultz tells us – “when I came on the board I only committed to one year – it just so happened my exit coincided with problems they had last quarter.”
He goes on to say, “I have a lot of confidence in the Groupon team.”
