Groupon Sacks Mason — Thursday’s IP Market Recap

by Marc Bastow | February 28, 2013 5:12 pm

IPMarketRecap Groupon Sacks Mason    Thursday's IP Market Recap [1]Groupon (NASDAQ:GRPN[2]) was the big story of Thursday from bell to bell … and then a little bit after that.

During the day, Groupon’s shares plummeted 25% after a woeful Q4 earnings report saw misses on both the top and bottom lines[3] and suggested weakness in the current quarter.

After the bell, however, GRPN was headed strongly in the other direction following the daily-deals site’s announcement that it was ditching CEO Andrew Mason[4] and looking for new leadership. Executive Chairman Eric Lefkofsky and Vice Chairman Ted Leonsis will oversee the company until a replacement is found.

As for the actual trading day …

With two straight days of triple-digit gains[5] behind them, the broader indices tried to reach toward record levels Thursday, powered by strong economic news on the unemployment and business-activity fronts. A Labor Department report[6] showed jobless claims fell sharply last week, while a report from the Institute for Supply Management showed business activity in the Midwest region improving in February, with its index rising to an 11-month high.

However, an afternoon swoon kept the Dow Jones and S&P 500 from notching all-time highs and left investors with small losses across the board. The Dow dropped 0.15% to 14054.49 and the S&P 500 dropped 0.1% to 1514.68. The Nasdaq also dropped 0.1% to 3160.19.

Retailer JCPenney (NYSE:JCP[7]) watched its stock tank early, finally settling on a 17% loss following a disappointing Q4 report that included a $1.95 per share operating loss and its weakest revenues since 1987[8]. Competitor Sears Holdings (NASDAQ:SHLD[9]) didn’t fare quite as badly on the earnings front, narrowing last year’s $3.4 billion annual loss to only $930 million. However, it too lost ground, to the tune of 6%.

Barnes & Noble (NYSE:BKS[10]) announced that its Nook and e-book sales fell 26% compared with the year-earlier quarter. However, some think the results will spur a divorce of the retail and Nook businesses[11], and BKS shares actually finished up 3%.

Three Up

Three Down

Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing, he did not hold a position in any of the aforementioned securities.

Endnotes:
  1. [Image]: http://www.investorplace.com/hot-topics/investorplace-market-recap/
  2. GRPN: http://studio-5.financialcontent.com/investplace/quote?Symbol=GRPN
  3. misses on both the top and bottom lines: http://investorplace.com/ipo-playbook/groupon-another-regularly-scheduled-disaster/
  4. announcement that it was ditching CEO Andrew Mason: http://blogs.wsj.com/digits/2013/02/28/groupon-is-replacing-ceo-andrew-mason/
  5. two straight days of triple-digit gains: http://investorplace.com/2013/02/daily-stock-market-news-was-the-dows-175-point-jump-a-false-breakout/
  6. Labor Department report: http://money.cnn.com/2013/02/28/news/economy/unemployment-benefits/index.html?iid=EL
  7. JCP: http://studio-5.financialcontent.com/investplace/quote?Symbol=JCP
  8. $1.95 per share operating loss and its weakest revenues since 1987: http://investorplace.com/2013/02/when-will-ackman-finally-lose-his-patience/
  9. SHLD: http://studio-5.financialcontent.com/investplace/quote?Symbol=SHLD
  10. BKS: http://studio-5.financialcontent.com/investplace/quote?Symbol=BKS
  11. divorce of the retail and Nook businesses: http://investorplace.com/2013/02/barnes-noble-make-a-profitable-divorce/
  12. HLF: http://studio-5.financialcontent.com/investplace/quote?Symbol=HLF
  13. RDN: http://studio-5.financialcontent.com/investplace/quote?Symbol=RAN
  14. WEN: http://studio-5.financialcontent.com/investplace/quote?Symbol=WEN
  15. NIHD: http://studio-5.financialcontent.com/investplace/quote?Symbol=NIHD
  16. CVC: http://studio-5.financialcontent.com/investplace/quote?Symbol=CVC
  17. RSH: http://studio-5.financialcontent.com/investplace/quote?Symbol=RSH

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