Groupon goes public, sees 40% increase

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The week that just passed finally saw Groupon go public after some intense build up. The coupon company that is now valued at $12.1 billion (insane, right?) saw its stocks jump in value on the very first day.

The shares jumped over 40% to $28.30. While it may seem surprising to many, such fluctuations are commonly noticed and were expected by the analysts.

Groupon was expected to price its shares somewhere between $16 to $18. Instead, on Thursday, it priced its shares at $20. After the jump in share price, Groupon is now worth approximately $20 billion.

Groupon’s shares are still very much volatile and pose high risk. Thus, analysts are warning buyers to carefully invest their money. It will be interesting to see if the bubble will finally pop for internet based companies with Groupon or will it keep on growing.

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Posted by admin   @   6 November 2011 0 comments

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