Groupon Deals a Dud — Wednesday’s IP Market Recap

by Kyle Woodley | February 8, 2012 4:41 pm

InvestorPlace Market Recap[1] Groupon (NASDAQ:GRPN[2]) — one of the big initial public offerings of 2011 — dropped a dud after the bell Wednesday in its first earnings report as a publicly traded company, and GRPN stock was being hammered in after-hours trading.

The daily deals site reported a fourth-quarter loss of $42.7 million (8 cents per share). The figure was an improvement from a loss of $378.6 million ($1.08) in the year-ago period, and it came on an almost 200% increase in revenues, to $506 million. However, the adjusted loss of 2 cents per share came in under analyst expectations for a 3 cent-per-share profit, and investors took GRPN shares down more than 10% soon after the report.

Also on the IPO front, Caesars Entertainment’s (NASDAQ:CZR[3]) initial public offering was a hit with investors Wednesday, who drove the casino operator’s shares up more than 70% — to $15.39 — from their original listing price of $9. However, the IPO itself was fairly small, raising just $16 million[4].

Otherwise, Wednesday saw traders keep a close eye on Greece, with the major indices barely budging, though numerous big tech and financial stocks headed higher throughout the day.

Bank of America (NYSE:BAC[5]) finished above the $8 threshold for the first time since August, gaining 3.6% to finish at $8.13. Citigroup (NYSE:C[6]) also enjoyed a 3.5% gain to land at $34.23, and Wells Fargo (NYSE:WFC[7]) was up a modest 1.2% at $30.63.

Among tech stocks headed higher were health care IT firm Cerner (NASDAQ:CERN[8]), which gained more than 13% on a fourth-quarter earnings increase of 30% on better-than-expected revenue, as well as increased bookings. Also up were graphics processor maker Nvidia (NASDAQ:NVDA[9], +3.6%) after news of a patent settlement with Rambus (NASDAQ:RMBS[10]), and semiconductor stock Micron (NASDAQ:MU[11], +3.7%), which earlier this week appointed Mark Duncan to CEO after the death of Steve Appleton.[12]

Buffalo Wild Wings (NASDAQ:BWLD[13]) was one of the biggest jumpers of the day, soaring more than 17% after reporting an earnings increase of 33% in the most recent quarter. The company also recently announced it would extend its testing[14] of Apple (NASDAQ:AAPL[15]) iPads for use by customers in its restaurants.

Three Up

Three Down

Kyle Woodley is the assistant editor of As of this writing, he did not hold a position in any of the aforementioned securities. Check out recaps from previous trading days here[23].

  1. [Image]:
  2. GRPN:
  3. CZR:
  4. raising just $16 million:
  5. BAC:
  6. C:
  7. WFC:
  8. CERN:
  9. NVDA:
  10. RMBS:
  11. MU:
  12. death of Steve Appleton.:
  13. BWLD:
  14. would extend its testing:
  15. AAPL:
  16. CSC:
  17. RL:
  18. Read more about Ralph Lauren here.:
  19. HIG:
  20. WU:
  21. PNRA:
  22. DNDN:
  23. here:

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