Groupon Rally Boosted by Tiger Global Investment
Groupon Inc. (GRPN), the largest provider of daily deals, rose 15 percent, climbing for the second day after Tiger Global Management LLC said it acquired a 9.9 percent stake in the coupon website.
The shares advanced to $3.88 at the close in New York, their biggest gain since May. The stock has gained for the sixth straight day, making it a 48 percent jump over the period.
Groupon is still 81 percent below its November 2011 initial public offering, when the shares sold for $20 each. The backing of Tiger Global, a New York hedge fund run by Chase Coleman and Feroz Dewan, is one of the first encouraging signs for the Chicago-based company amid a tumultuous year, said Edward Woo, analyst at Ascendiant Capital Markets LLC in Irvine, California.
“Now that we have a really smart investor taking a really big stake in the company, investors may be saying it’s worth jumping in now,” said Woo, who recommends selling the shares.
Groupon took steps to bolster its international sales, which fell during the most recent quarter, including promoting e-commerce veteran Kal Raman to chief operating officer last week.
To contact the editor responsible for this story: Tom Giles at email@example.com