Please ensure Javascript is enabled for purposes of website accessibility

Here's Why Groupon Shares Are Rising Today

By Chris Neiger – Updated Jun 16, 2020 at 12:42PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors were happy to see some positive economic data.

What happened

Shares of Groupon (GRPN 0.75%) climbed today after the Commerce Department released new data showing that U.S. retail sales popped in May. Groupon's stock rose as much as 14.1% in the morning, and as of 12:15 p.m. EDT on Tuesday, it was up 10.7%.

So what

Investors have been looking for any sign that the economy could be getting back on track, and today's retail numbers gave them a glimmer of hope. U.S. retail sales jumped 17.7% in May after falling 14.7% in April.

The jump comes as more states have eased lockdown restrictions and are slowly allowing more businesses to reopen. It's worth mentioning, though, that retail sales spiked on a sequential basis; May's retail sales were still down 6.1% from a year ago.

A pink and blue line chart on a blue background.

Image source: Getty Images.

Investors may also be optimistic about Groupon and other stocks today after a report showing that an inexpensive steroid drug was shown to help reduce deaths in severely ill COVID-19 patients.

The broader market was gaining ground today, with the S&P 500 rising 1.8% as of 12:16 p.m. EDT.

Now what 

Groupon investors have experienced some wild share-price swings lately. The most recent came just six days ago when the stock fell by more than 12% after the online provider of shopping deals and coupons announced a reverse stock split. Despite today's jump, Groupon's stock is still reeling from the pandemic and is down 62% over the past 12 months, compared with the S&P 500's 8% gain.

Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Groupon, Inc. Stock Quote
Groupon, Inc.
GRPN
$8.02 (0.75%) $0.06

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
326%
 
S&P 500 Returns
102%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/03/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.