After Hot IPO, Groupon's Shares Sink
Groupon completed a monstrous IPO, but since then, shares have fallen 34 percent in three days.
Groupon’s shares fell again Wednesday, the third straight day. Shares were trading around $17 on Nasdaq, a 34 percent decline in the past three days—lower even than its IPO pricing of $20, Reuters reports. When Groupon issued its $900 million IPO a few weeks ago, it completed the second biggest U.S. tech IPO ever since Google’s 2004, $1.7 billion public offering. Concerns still linger over the intense competition in the daily deals space and a great deal of recent short selling. Plus, markets have been quite volatile anyways recently, thanks largely to gloomy news from Europe and China, The New York Times reports.
To get back on the track, Groupon CEO Andrew Mason must take a pro-active stance, according to Reuters:
“The momentum is negative now and it is likely to continue negative until they have something positive about the company,” said Edward Woo, a Groupon analyst at Wedbush Morgan.