Why Groupon (GRPN) Is Up Today

Update (4:33 p.m. EST): Updated with closing price, day high and low prices, price change and volume information.

NEW YORK (TheStreet) -- Groupon Inc.  (GRPN) rose 3.92% to $11.41, up 43 cents from its previous close of $10.98, at the close of the trading day on Tuesday after the company purchased fashion sale site Ideeli for $43 million in cash. 

The stock had a volume of 12,349,752, well below its average of 19,659,800. It hit a high of $11.49 and a low of $11.03 for the day.

The purchase was a loss for Ideeli shareholders, as the company had received $107 million in venture capital from 2007 through 2013. Groupon announced that it plans to keep Ideeli running as a separate website but noted opportunities for synergy with the new acquisition.

Ideeli uses timed sales, similar to Groupon, to sell designer products at up to 90% off and features different brands each day. But this method had not yielded positive results for the company, which most recently operated at a $30 million loss.

Groupon's stock recovered somewhat on Tuesday morning after the company had trended downward for the better part of 2014.

GRPN Chart

GRPN data by YCharts

 

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