Hot stock to watch: After declining for two straight days, group buy site Groupon (GRPN) continued to plunge in early trading today; as of 11:09 am, GRPN stock price has lost 3.50%, to $7.50; and once touched $7.25, the lowest level since its IPO; Groupon’s market capitalization has fallen below $5 billion, to $4.81 billion.
Since late June, GRPN stock price has moved down from $11 all the way to the current price, with a cumulative loss of over 30%.
On July 2, Susquehanna reduced its target stock price on GRPN stock from $15 to $12, and gave the stock a “neutral” rating. GRPN stock price plunged 20% in the next few trading days.
On November 4, 2011, Groupon landed on the NASDAQ by selling 35 million shares at an IPO price of $20 per share, and raised $700 million.