Groupon ended its IPO day up, but almost two-thirds (62.5%) of the people who bought and sold the company’s stock that day lost money.The average return was -3.3%.
That figure, and a bunch of other interesting insights, comes from SigFig – a platform that tells us it is “tracking more than $20 billion in synced assets across over 65 brokerages on our platform.”
Says a PR rep: “We help people invest smarter by helping them monitor their investments and then making personalised recommendations. For example, we can tell you if your broker is charging you more than average in fees or if you’ve invested in a fund that’s suboptimal because it charges high fees, etc. We’re finalising the new product, which will have these recommendations, and will have it out the door soon.”
More from SigFig’s data on the Groupon IPO:
- Over a fifth (22.3%) of people who bought GRPN on the day it IPO’d dumped the stock that same day.
- Since the stock price opened at $28, most people didn’t get in until the stock price had already jumped well over the $20 offering price (the average purchase price was $28.17)
- People showed hometown pride — Chicago, Groupon’s birthplace, had the highest percentage of GRPN investors
- By comparison Pandora day traders who flipped their stock on its opening day didn’t fare well either and lost even more (8.52% on average)
- Most LinkedIn investors did better and those who flipped their stock made money (the average was 7.10%)