Time to open the IPO floodgates…
The initial public offering, which was priced at $20 the night before, soared 40 percent at the opening bell to hit $28. Shares breached $31, before settling at $26.11 at the close, valuing the three-year old company at $16.5 billion.
At $700 million, the offering is the largest for a Internet company in the United States since Google in 2004. Groupon is also the first major company to go public since August, when European sovereign debt fears rattled investors and sent the I.P.O. market into a deep freeze.
“The risk is to the downside from here,” said Mr. Schuster, who decided not to buy Groupon shares on Friday. “This will be popular for short-term traders.”