Groupon — Today’s Not-Zynga
October 5, 2012 by Paul Ausick
Today’s collapse in Zynga Inc. (NASDAQ: ZNGA) shares was predictable given last night’s downward revision for quarterly earnings expectations. What was not predictable was today’s rise in shares of Groupon Inc. (NASDAQ: GRPN).
Groupon had no news today, so it must be that investors are happy to find a social media stock today that is neither Zynga nor Facebook Inc. (NASDAQ: FB). Groupon’s shares got off to a slow start today, down about 0.6% at the open, but by mid-afternoon the shares were up over 10%. Groupon started the day down about 18%, fell further to below 20%, and now trades down around 16%. Facebook, too, has been lower all day but not by as much as Zynga.
Nearly 18% of Groupon’s stock is short, and today’s sell-off of Zynga’s shares is enough to get the short sellers to happily cover. Groupon’s volume was about 30% higher than usual too. Groupon is scheduled to report earnings next Friday, and the short sellers can’t wait.
Groupon’s shares are up more than 10% about 45 minutes before closing today, at $5.29 in a 52-week range of $4.00 to $31.14.
Paul Ausick
Take This Retirement Quiz To Get Matched With A Financial Advisor (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.