Shares of daily deals site Groupon Inc. (NASDAQ: GRPN) rallied in trading today after New York City-based hedge fund Tiger Global Management LLC disclosed in a filing that it acquired a 9.9% stake in the Chicago-based company.
Tiger Global acquired 65 million shares in Groupo, according to a filing with the SEC. The investment from Tiger Global is a sign of confidence in Groupon, which recently reported disappointing third-quarter results.
Groupon shares rose to an intra-day high of $3.57 in trading today before finishing the day 8.53% higher at $3.37 on above average volume of 30.88 million. The stock has gained 16.21% in the last three trading sessions.
Despite the gains, GRPN shares are still down 87.09% since the company completed its IPO in November 2011.
GRPN recently reported disappointing results. For the third quarter ended September 30, 2012, the company reported revenue of $568.6 million, up 32% over the same period in the previous year. The company’s gross billings for the quarter were $1.22 billion, representing an increase of 5%.
GRPN’s operating income for the third quarter was $25.4 million, compared to loss from operations of $0.2 million reported in the third quarter of 2011. The company’s net loss for the quarter was $3 million.
Earlier this week, GRPN announced the opening of its First Concept Store in Hong Kong. The store is located in the heart of Causeway Bay’s shopping area. The Groupon Concept Store will provide customers with a platform to redeem lifestyle products, test the products in a physical environment and offer an unparalleled customer experience by bridging the gap between online and the offline world.
Last week, GRPN announced the appointment of Kal Raman as Chief Operating Officer (COO). In this role, Raman will continue to report to CEO Andrew Mason and oversee GRPN’s global sales and operations.
Recent Comments