SAN FRANCISCO ( TheStreet) – Groupon (GRPN - Get Report) surged in late trading Friday, after Credit Suisse raised its price target on the group buying platform company following better than expected third quarter earnings. GoPro (GPRO - Get Report) also jumped after announcing better than anticipated earnings.
Groupon climbed 22% to $7.31 at the close.
The Chicago-based group buying company beat Wall Street's earnings estimates in the third quarter, prompting Credit Suisse analyst Stephen Ju to raise his price target to $6.50 from $6.29. With Groupon crossing $7.34, that bump up apparently could have been higher.
During the quarter, Groupon said its active customers declined to 52.7 million worldwide. But in North America, demand remains strong with the company posting 900,000 active users. Read more about Groupon's earnings performance in this transcript of its earnings call with analysts.
GoPro soared 13% to $77.10 at the end of the session.
The high-adventure video camera maker also gained after posting better than expected third quarter results, with several analysts raising their price target for the San Mateo, Calif., company. FBN Securities increased the price target to $100 from $90, while Wedbush raised it to $98 from $81.
Demand for the company's newly released high-end camera Hero4 and comments from the CEO that GoPro now has a better handle on managing its supply chain to avoid shortages helped give analysts confidence things will get even better for the camera maker.
But investors should also keep an eye for when GoPro's locked up shares are set to expire and the holders of these shares can begin trading them on the open market. Check out the transcripts of GoPro's third quarter earnings call with analysts.
At the time of publication, the author held no positions in any of the stocks mentioned, although positions may change at any time.
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
TheStreet Ratings team rates GROUPON INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate GROUPON INC (GRPN) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."
You can view the full analysis from the report here: GRPN Ratings Report