NEW YORK (TheStreet) -- Groupon  (GRPN - Get Report) stock is plunging 8.82% to $3.72 on heavy trading volume this afternoon after spiking during the two previous trading sessions. 

Shares of the daily deals website soared more than 40% yesterday on reports that Chinese e-commerce giant Alibaba (BABA) purchased a 5.6% stake in the company. 

Yesterday's surge followed a nearly 29% increase on Friday on better-than-expected 2015 fourth quarter earnings.

"It might not be too early to buy Groupon anymore," TheStreet's Jim Cramer said on CNBC's Squawk on the Street this morning. He pointed out that the company reported a better-than expected quarter and now has a buyer of shares.

"I'm going positive on Groupon," he stated.

About 37.43 million shares of Groupon have been traded so far today, well above the company's average trading volume of roughly 12.74 million shares per day. 

Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.

Groupon's weaknesses include its unimpressive growth in 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

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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