Groupon Shares Recover After Early August Drop
Groupon (NASDAQ: GRPN) on Friday extended a rally in its share price that started from a trough more than two weeks ago.
The Internet-based coupon provider fell beginning August 5 when it offered second-quarter results and an outlook well below the Street's expectation. Since then it's up nearly 20 percent.
Re/code Co-Executive Editor Kara Swisher told Benzinga last week that while Groupon has struggled since going public in 2011, its original idea was an important one.
"It's an important space, obviously, because everything is going to the mobile device," she said, adding that Groupon's longer-term success is uncertain.
Separately, it was disclosed August 13 that activist investor Barry Rosenstein's Jana Partners had boosted its stake in Groupon slightly to 47 million shares from 41 million. Rosenstein now owns about seven percent of Groupon.
But Groupon's three founders control its Class B shares, which have 150 votes apiece; Class A shares owned by Jana have a single vote.
Groupon traded recently at $6.89, up 3.77 percent.
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