Tag Archives: Groupon

Yelp Joins IPO Parade

This week saw two tech IPOs and news of one more in the offing, Yelp’s. If you’re one of those employees at a company that’s gone public or is preparing to go public, you may end up with options that are suddenly worth a lot of money, and facing questions about whether to exercise your options and then how much of the company’s stock to sell. Remember that keeping too much of your portfolio in one company’s stock – even your own company’s stock – is one of the investing practices academic researchers have consistently demonstrated is a mistake. (See The 9 Stupid Things Investors Do). In what’s known as familiarity bias, people tend to invest in what they know, […]

Should You Hold On To Groupon Stock? What About Zynga?

The dust has settled a week after Groupon’s IPO last Friday. Here’s a quick Q&A on the offering. How much did Groupon raise? $700 million. It was the largest IPO by a U.S. Internet company since Google Inc. raised $1.7 billion in 2004, according to Reuters. Groupon is now trading on the NASDAQ under the ticker GRPN. All that sniping about accounting and the company’s business model? It’s history. At least for now. The company’s float was only a little more than 5% of the company, which means the firm is now valued at $13 billion. Shares rose to $20, above an initial range of $16 to $18, and by the end of this week were trading around $24. But […]

Why Watching Media Reports On The Market Is A Waste Of Time

Americans concerned about their portfolios (everybody) woke up to more bad news Thursday, as headlines about a global selloff permeated the media. If you believe, as we do, that it’s important to invest for the long term, rebalance in a disciplined way, and limit your emotionally driven moves to the level of tweaking (if you really need to), then getting consumed in these reports is counterproductive. Here’s a great piece on the topic: There’s no reason why stocks are down today. Check out the graph at the bottom of the post that shows the long-term gain in U.S. equities. Thanks to Abnormal Returns for the link. Investors are taking out their fear and frustration with the political system on the […]