Groupon Becomes Biggest IPO Since Google, But Stock Ends 16% Below High

Groupon (NASDAQ:GRPN) quieted its skeptics as its stock price soared far above the expected range during the initial public offering on Friday.  Thursday night the company priced its 35 million shares at $20 when analysts had predicted a price of $16-$18.  The 35 million shares included an extra 5 million more than was initially planned for to meet demand.  Shares began trading at $28, 40% more than the $20 IPO price.  During the day the stock reached a high of $31, but came back down to close out at $26.11.

MarketWatch quotes analyst Nick Einhorn as saying that the release of additional shares, the higher start price, and the stock’s increase in value throughout the day “showed that there was a lot of demand for the stock, despite the many risks.”  As proved time and again, with risk comes reward.

Investing Insights: Groupon Analyst Cheat Sheet.

Groupon’s IPO was the largest in the US internet software or services industry since Google’s (NASDAQ:GOOG) in 2004.  The offering raised approximately $700 million.

  • Groupon, Inc. (NASDAQ:GRPN): The shares recently traded at $26.11, up $6.11, or 30.55%. Its market capitalization is $. They have traded in a 52-week range of $N/A to $. Volume today was 49,813,026 shares versus a 3-month average volume of N/A shares. The company’s trailing earnings are $-2.17 per share. About the company: Groupon advertises a daily deal, typically a half-off coupon for anything from a local restaurant or retail store to a hotel or spa; if enough consumers buy the coupon online by midnight, the deal is on and the featured business can achieve a nice chunk in sales. Get the most recent company news and stock data here >>