Groupon stock is up more than 40% on the news Alibaba purchased 33 million shares

Groupon stock is skyrocketing again, this time spiking more than 40% following the news that Chinese e-commerce giant Alibaba purchased a 5.6% stake in the online deals company.

Alibaba purchased 33 million shares in Groupon, according to SEC filings that were posted after the market closed on Friday. Alibaba holds stakes in multiple US companies including the augmented reality headset Magic Leap, Amazon competitor, and Uber rival Lyft.

Groupon shares were up 41% on Tuesday morning as Wall Street reacted to the news, making it the largest intraday gain for Groupon since its IPO back in 2011, according to Bloomberg.

A Groupon representative told Bloomberg that the company had not been aware of Alibaba’s stake until the public filing.

It’s been a wild week for Groupon.

The troubled online deals company posted stronger than expected Q4 earnings on Thursday, causing the stock to soar 27% the following day as Wall Street began to consider that Groupon’s promised turnaround could be working. Groupon fell upon some hard times in the years followings its highly anticipated IPO in November 2011, losing more than 75% of its value since going public as Wall Street and investors began to doubt how lucrative daily deals truly were.

After shaking up its executive structure and promoting Rich Williams to CEO in November, the company has focused on streamlining its global footprint and increasing its marketing while moving away from daily deals. And with $917.2 million in revenue in Q4 against expectations of $845.9 million, the new strategy appears to be working.

“We feel good about our progress is shaping up, but the reality is we’re a quarter in to four really big, long-term initiatives,” Williams told Business Insider on Friday. “We need to prove that we can continue to make progress outside of the fourth quarter and holiday season against those initiatives, and that they will drive the results we need them to drive. So we’re confident in our progress but we still have a lot of work to do.”

You can read our full interview with Groupon CEO Rich Williams here.

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