Groupon stock soars on first day of trading
November 4, 2011 (NEW YORK) (WLS) -- Investors pushed the price of a share past $30 on the first day of trading for Groupon, which eventually settled back to about $26 at the close of the day.
The Chicago startup went public Friday.
"Groupon made the initial public offering for those interested in buying stocK. And this is the first crack at selling shares to the general public. Anyone can invest in the shares," Tom Nohel, Loyola School of Business Administration, said.
Among today's Chicago Groupon deals -- America's dog. "And we are looking to bring in new customers that don't know they are here and work around the corner and have never visited the store," Manolis Alpgianis, America's Dog, said.
Nestled beneath Washington Street in the pedway, Image nails has a running Groupon deal.
"You're saving money and getting a great deal and doing something I would have done anyway and saving money on it," Mary Reid said.
The salon's owner says the group coupons kept their business in the black even during the recession.
"Not so many people know where we are, but Groupon, it's the best tool marketing to get people to come in to us," Kim Ly, Image Nails, said.
The momentum for Groupon to go public was tripped up a bit by recently replacing staff and intense scrutiny from the security and exchange commission for accounting errors. But the company's future -- not their past -- has some concerned.
"OK, Groupon has own the consumer there. They're the preferred brand but we don't know if these trends will continue in a positive way," Rick Summer, Morningstar, said.
A group of students told ABC7 they love the Groupon deals but it doesn't translate into business loyalty.
"And I may never go back again without a Groupon deal," Briyanka Karunanithi said.
"Maybe in the future, if you're really impressed with it or if you went somewhere on a special occasion or with the Groupon deal, but not so much [otherwise]," Aibhin O'Leary said.
Some business owners tell ABC7 they lost money partnering with Groupon and won't do it again.
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