Shares of Groupon (NASDAQ: GRPN ) skyrocketed today, up over 20%, on news announced during the company's earnings report. While the company was able to increase revenue by 7%, one of the biggest drivers of the stock today has been the leadership story. Interim CEO Eric Lefkofsky has officially been designated as the permanent CEO, with Ted Leonsis being appointed Chairman of the Board of Directors.
Also as part of this story is the company's increasing presence in mobile. Groupon made 50% of its North American revenue via transactions on mobile devices this June, up from 30% last June. Groupon also announced in its report that it will be initiating a $300 million share buyback program.
In today's Stock of the Day, Motley Fool analyst Jason Moser takes a hard look at how Groupon has grown since its IPO just over a year ago. While he sees the strong new leadership and increasing utilization of mobile as very big positives for the company, Moser tells investors why he thinks the share buyback program is a huge mistake, and that despite the run Groupon stock has had in 2013, he's not interested just yet.
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