"Groupon shares are falling apart.
In an ominous development for the Internet IPO market generally and the daily deals sector generally, investors are walking away from the company?s shares. Groupon went public earlier this month at $20 a share, closing at $26.11 on the first of trading after briefly trading as high as $31.14. The stock stabilized in the $24 range for a few days, before hitting a new closing high last Friday at $26.19. But this week, Groupon holders have no reasons to be thankful; the company?s stock is looking like a turkey.
Today, the stock is down $2.84, or $14.2%, to $17.23, and has traded as low as $17. For the week, the stock is down about 35%.
So, why the big sell-off? Maybe because the company has an unprofitable, largely non-proprietary business model with a zillion competitors? But we all knew that before the IPO? didn?t we?"
article here
In an ominous development for the Internet IPO market generally and the daily deals sector generally, investors are walking away from the company?s shares. Groupon went public earlier this month at $20 a share, closing at $26.11 on the first of trading after briefly trading as high as $31.14. The stock stabilized in the $24 range for a few days, before hitting a new closing high last Friday at $26.19. But this week, Groupon holders have no reasons to be thankful; the company?s stock is looking like a turkey.
Today, the stock is down $2.84, or $14.2%, to $17.23, and has traded as low as $17. For the week, the stock is down about 35%.
So, why the big sell-off? Maybe because the company has an unprofitable, largely non-proprietary business model with a zillion competitors? But we all knew that before the IPO? didn?t we?"
article here
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