Image source: Groupon.

Shares of Groupon (NASDAQ:GRPN) soared 30% two weeks ago after posting blowout quarterly results. The good times kept going last week, with Groupon stock gaining another 18%. The strong gains -- 53% over the past two weeks -- kept going days after the daily deals provider's better-than-expected financial report. It also didn't hurt that Groupon is making a move that may give lululemon athletica (NASDAQ:LULU) and other fitness apparel makers fits. 

Last month's quarterly report got the market excited again about Groupon. Gross billings continue to grow in its home turf -- up 8% in North America -- and its gutsy decision to cut bait in profitless overseas markets should pay off on the bottom line soon. It still managed to beat Wall Street's targets on both ends of the income statement. 

The big gem in Groupon's report two weeks ago was the discounter propping its top-line guidance higher. It now sees $3 billion to $3.1 billion in revenue this year, up from an earlier range between $2.75 billion and $3.05 billion. 

Groupon is pushing out good news again, and it may have a few more workout reps before it's done.

Fit for investing

Image source: Groupon.

The most interesting news out of Groupon last week came on Thursday, when Groupon announced that it's making a splash in women's activewear. Groupon has been popular with deal-seeking yoga buffs for introductory classes and marked down gym memberships. Its Groupon Goods marketplace has also offered up fitness trackers and workout gear at closeout prices, but now it's pumping up its presence in this niche.

Groupon unveiled Form+Focus on Thursday, a private-label line of fitness apparel. It's not a move that may initially send rumblings down the lululemon athletica boardroom. The lululemon brand is an aspirational moniker. Form+Factor will never have connotations of luxury. However, the very presence of a vocal discounter of quality activewear for women can weigh on the pricing power of lululemon and its other high-end peers. It ultimately gives Groupon one more way to use its growing base of stateside shoppers to sell more things. also made things interesting on Friday morning, running an article arguing that it's a prudent time to hop on the stock. However, it was generally more buying following the prior week's blowout quarter and raised guidance that kept the rally going into last week.

Groupon isn't likely to come through with three consecutive weeks of double-digit percentage gains. It's also working on an impressive streak of six consecutive weeks of closing higher, but that's not going to last forever either. The good news is that bullish momentum here. Groupon will now need to build on that.

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