Groupon’s stock took a positive jump on February, 28 after the daily deal website announced that it has removed the CEO and founder of the company, Andrew Mason. According to the latest update, when the news surfaced on the trading floor Groupon’s shares posted an increase of 12 percent during the trading hour starting from a price of $4.53 per share. The action did not stop just there as NASDAQ reported that the shares of Groupon hit a $5.10 high after-hours at 4:20pm Eastern Time.
However, after the initial strong response the after-hours rally in Groupon’s shares slowed down and it is hard to predict how the stock will perform in the coming days because the recent boost in the stock was based on sentiments and the market has yet to decide its actual course which will be determined through its latest earnings. A lot of investors still believe that Mason’s departure is a positive move for the company which has been struggling to post decent earnings for quite some time now.
Groupon offered its IPO to the investors at a price of $20 per share during November, but since then the stock has failed to perform as it is going down steadily. And finally when 2012’s fourth quarter result of the daily deal website was made public on Wednesday, February 26th its stock tumbled down by 25 percent, which was a big dip.
On the other hand, Mason believes that his firing is completely justified because being the CEO of the company he was the one who should be held responsible for the crisis. Mason shared his thoughts in his goodbye note to the employees of Groupon, which he had posted on his Twitter accounted. Here are some of the lines from Mason’s last message:
“I was fired today. If you’re wondering why… you haven’t been paying attention. From controversial metrics in our S1 to our material weakness to two quarters of missing our own expectations and a stock price that’s hovering around one quarter of our listing price, the events of the last year and a half speak for themselves. As CEO, I am accountable.”
Still many staff members at Groupon will surely be sad to see their CEO depart in this way.
Source: TechCrunch
Photo: QZ
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