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What: Shares of coupon dealer Groupon
So what: There was no major news about Groupon, but fellow social media stinker Zynga
Now what: Groupon is one of the most volatile stocks on the market, so investors shouldn’t read too much into today’s gain. This is the fourth time in a month that the stock has moved by 10% or more, as it’s moved to compete with Open Table and announced an initiative into mobile payments in the past few weeks. Those decisions could ultimately deliver; but for now, these social stocks seem only to have proven that the value of what's possible is often overvalued. Investors are better off waiting until Groupon proves its financial worth on the bottom line before getting on board.
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