Groupon Shares Going Gangbusters on Day One

Thanks, but no thanks, says Henry Blodget
By John Johnson,  Newser Staff
Posted Nov 4, 2011 11:11 AM CDT
Groupon Shares Going Gangbusters on Day One
In this file photo, employees at Groupon pose in silhouette with the company logo in the lobby of the online coupon company's Chicago offices.   (AP Photo/Charles Rex Arbogast, File)

Groupon is having a big debut as a public company. The stock was selling for about $30 a share at the market's open today, way above the $20 IPO price the company set last night, reports the Wall Street Journal. Which means that, on paper anyway, the company is valued at about $20 billion. Part of the surge: Institutional investors who got the stock early are flipping it for profit just as fast as they can, notes Henry Blodget at Business Insider.

You won't catch him on the bandwagon: "There is NO WAY I would own Groupon's stock for the next few quarters at this price, given the business transition Groupon is currently undergoing," he writes. Sure, it's possible the stock might double, but from the looks of things, it could easily drop to $12 a share in the near future. (More Groupon stories.)

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