Will Groupon Stock Break the Reverse-Split Curse?
There aren't too many stocks that have executed reverse stock splits and lived to tell the tale. Groupon (NASDAQ: GRPN) is hoping to be one of the few storytellers to defy mortality after completing a 1-for-20 split last week, and it's off to an encouraging start after posting well-received financial results after Tuesday's market close.
Groupon didn't have much of a choice in going for a reverse split. The stock broke the buck in early March, starting the clock on its potential exchange delisting. It was already starting to play the part of a speculative penny stock, and the pandemic shutdown naturally made things even worse. How could it survive when the local restaurants, shops, and service providers that it leans on to provide daily deals were closing down during the shelter-in-place phase of this pandemic?
But with businesses now starting to gradually ramp up again in a soft economy (fertile soil for Groupon's model), it does give the deal maker some intriguing appeal here for investors.
Source Fool.com
