NEW YORK (TheStreet) -- Shares of beleaguered deals giant Groupon (GRPN) are soaring, up more than 23% to $10.78 following the company's second-quarter earnings report, which arrived better-than-expected.I've spent a great portion of 2012 wondering if Groupon, which arrived on the scene with plenty of fanfare would ever live up to its promise. Groupon investors, meanwhile, didn't appreciate what was perceived as unfair attacks on the company. But those questions needed to be raised, especially when the company's 2012 existence culminated with Andrew Mason, now its former CEO, being named the worst CEO for all of 2012. On Wednesday, none of that mattered. The company reported a loss of a penny per share on revenue of $608.7 million. When excluding one-time items, earnings arrived at 2 cents per share -- in-line with Street estimates. Business in North America, which shot up by 45%, was not only extraordinary, but the performance also helped offset a 20% decline in international sales. This means that Groupon's becoming more balanced. Even more impressive, though, was that the company reported 50% of North American sales were made on mobile devices. As with the positive reaction to Facebook's ( FB) stock after the social media giant demonstrated its new mobile capabilities, Groupon investors cheered the progress in mobile purchasing. This has always been a popularly cited bear argument, especially from a competitive leverage standpoint. I have to admit, this caught me by surprise. What was not a surprise, however, was that the company announced that co-founder Eric Lefkofsky, would remain as permanent CEO since replacing Andrew Mason, who was fired on Feb. 28. On more than one occasion, I've mentioned that Lefkofsky, despite his checkered past, was the best candidate to try to lead Groupon and prove that its deals concept could work. This is not a situation where I'm trying to now take credit for the company's performance. While I've always liked Groupon's concept, I've never bought into the idea that the company could make any money, especially with more prominent names like Google, Amazon ( AMZN) and Yahoo! ( YHOO) circling the waters. So with my having such a bearish track record, I'm not going to pretend to suddenly be in love with the company.
"In other words, poor fundamental or not, there is very limited downside risk in Groupon from current levels. And if the stock only reaches a share price of $10.51, which is the midpoint of its 52-week high, Tiger Global may end up making out like a bandit in 2013 with gains of almost 120%. So let's do the math -- an investment of $202 million can potentially turn to almost half a billion ($4.45 million) in one year. Not a bad deal."As of this writing, shares of Groupon are right around the $10.51 mark. Tiger Global's purchase turned out to be pretty smart. From where I come, we call it "stealing candy from a baby." The Street seems to have fallen in love with Groupon again. I'm happy for the company and its investors. But I wouldn't get carried away here just yet. The progress in mobile is impressive, yes. But there's still plenty of work left to be done. I still believe that Groupon lacks the ability to create new markets. The fact that Groupon can only operate and service existing markets, make the company vulnerable to macro weakness. This is regardless of how small or temporary that weakness may be. But unlike 2012, there's now a light at the end of the tunnel. This time, though, it's not an incoming train. At the time of publication, the author held no position in any of the stocks mentioned. Follow @saintssense This article was written by an independent contributor, separate from TheStreet's regular news coverage.