Groupon Sees Success with Sales of Holiday Deals
On Wednesday, Groupon (NASDAQ:GRPN) reported its holiday sales a success. The company went through a quiet period post-IPO and received quite a bashing from the press. Groupon reports that they sold more than 650,000 holiday deals over Black Friday weekend and through Cyber Monday.
Their stock was up to $17.50 on Wednesday, which is a 9.3% increase, and by Thursday it almost reached $19, though it’s still below the IPO price of $20. Groupon was the largest tech IPO since Google (NASDAQ:GOOG), but quickly fell below $17 last week. Analysts are not sure why, but there has been negative reports by the press, such as a small baker forced to sell 100,000 cupcakes at a discount and lost over $20,000.
At the Credit Suisse Technology Conference, Groupon CEO Andrew Mason blamed the negative coverage on a disaster-happy news industry. “The anecdotes that get picked up in the press are examples of ‘plane crashes’ just being more interesting and more media-worthy stories than the safe landing,” Mason said.
Mason however did say the company is still learning which deals are best for different merchants. He also said Groupon has a significant lead in accomplishment and stability over its competitors. “We feel like we’ve reached this point now where really our greatest competition is ourselves,” Mason said.
Company spokesperson Julie Mossler told Mashable in an email statement, “Groupon is focused on a long-term goal to be the most effective, trusted marketing partner for local businesses. We’re overly conscious that every minute of the day is another opportunity to improve our merchant services or develop cool products for consumers, and we can’t let them go to waste.”
Here’s how Groupon is trading now:
Groupon Inc (NASDAQ:GRPN): GRPN shares recently traded at $19.19, up $0.15, or 0.79%. They have traded in a 52-week range of $14.85 to $31.14. Volume today was 428,761 shares versus a 3-month average volume of 5,557,490 shares. The company’s trailing earnings are $-2.17 per share.