Groupon stock shot up almost 18 percent during after hours trading on Monday when first quarter earnings turned out to be much better than analysts had originally predicted. Thanks to increased demand from consumers, the company posted a smaller net loss than those on Wall Street had originally anticipated. This, of course, is very good news for the people over at Groupon.
According to the Associated Press, the company's revenue has jumped nearly 89 percent, which brought them a very cool $559.3 million. In fact, the news prompted analysts to upgrade the stock from "Neutral" to "Buy". The Chicago-based coupon peddler just went public last November, though its shares have yet to return to the original IPO price.
Shares of Groupon were $13.70 during the morning trade, though it closed at $11.74 on Monday. The company had been on a steady decline since February.
During the fourth quarter of 2011, Groupon reported profits of $15 million, though this was later changed to a $15 million loss after it failed to accurately predict how many individuals would refund their purchases. Since then, the company has brought in board members with stronger accounting skills in order to prevent the same thing from happening all over again at a later date.