Evercore Calls Groupon's Rally on Friday 'Unfounded'
Investors in Groupon (NASDAQ: 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
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