Evercore Calls Groupon's Rally on Friday 'Unfounded'

Investors in Groupon GRPN are taking profits Monday morning following a 23 percent surge on Friday. The stock is down nearly 8 percent to $4.32 at last check. After pushing over resistance at $4 on Friday, Groupon shares edged toward the $4.25 level. Upon breaching this technical level, the stock charged over $3.50 and closed the trading week at $4.69. Evercore Partners' Ken Sena issued a note earlier which called the stock's sharp move higher on Friday likely unfounded. Sena offered the speculation on Friday was related to CEO Andrew Mason cancelling a public appearance. Sena believes Google is probably not interested in Groupon as Google is focusing on a "network effect." The analyst also noted the recent accelerating pace of daily deal deterioration. Evercore maintains an Underweight rating and $3 price target on shares of Groupon