Despite recent criticism of the company's accounting and concerns about Groupon's ability to turn a long-term profit, the shares opened up 40% from their IPO pricing level.
Late Thursday night, Groupon priced 35 million common shares at $20 each, above the range of $16 to $18 it had initially sought. The offering raised about $700 million and valued the company at just under $13 billion.The stock then opened at $28 a share on the Nasdaq on Friday. Anticipating such a scenario, experts had urged investors to flip the shares at market open. The shares went on to hit a high of $31.14 during the day's trading, eventually closing at $26.11, a 30.55% hike on the offering price. One of the biggest challenges looming on the horizon for the newly-public company, however, is increased competition from the likes of Google (GOOG), Amazon (AMZN) and LivingSocial, as well as a slew of smaller firms. Groupon also goes public at a time of ongoing uncertainty about the health of the global economy. -- Written by James Rogers in New York. >To follow the writer on Twitter, go to http://twitter.com/jamesjrogers. >To submit a news tip, send an email to: email@example.com.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV