Groupon — Today's Not-Zynga

Today's collapse in Zynga Inc. (NASDAQ: ZNGA) shares was predictable given last night's downward revision for quarterly earnings expectations. What was not predictable was today's rise in shares of Groupon Inc. (NASDAQ: GRPN).

Groupon had no news today, so it must be that investors are happy to find a social media stock today that is neither Zynga nor Facebook Inc. (NASDAQ: FB). Groupon's shares got off to a slow start today, down about 0.6% at the open, but by mid-afternoon the shares were up over 10%. Groupon started the day down about 18%, fell further to below 20%, and now trades down around 16%. Facebook, too, has been lower all day but not by as much as Zynga.

Nearly 18% of Groupon's stock is short, and today's sell-off of Zynga's shares is enough to get the short sellers to happily cover. Groupon's volume was about 30% higher than usual too. Groupon is scheduled to report earnings next Friday, and the short sellers can't wait.

Groupon's shares are up more than 10% about 45 minutes before closing today, at $5.29 in a 52-week range of $4.00 to $31.14.

Paul Ausick

Read Full Story
  • DJI26840.3823.790.09%
    NASDAQ8052.60-4.44-0.06%
  • NIKKEI 22521798.87246.871.15%
    Hang Seng26521.85213.410.81%
    DAX12486.56-25.09-0.20%
  • USD (PER EUR)1.10-0.0015-0.13%
    USD (PER CHF)1.00-0.0004-0.04%
    JPY (PER USD)108.380.01700.02%
    GBP (PER USD)1.26-0.0076-0.60%