Want to make money appear out of thin air? Simply become an institutional investor in an over valuated internet company and then offload your shares during their initial public offering (IPO). That appears to be the case with Groupon as shares in the company opened on Friday at $30, that’s $10 higher then the company’s proposed IPO pricing.

Under current market conditions the company is now valued at $20 billion, at least on paper, however analysts are warning that the quick flipping of shares by early investors is allowing the stock to artificially inflate.

Writing for Business Insider Henry Blodget notes:

“There is NO WAY I would own Groupon’s stock for the next few quarters at this price, given the business transition Groupon is currently undergoing.”

Blodgets prediction? $12 a share in the near future, although he does note that the stock could double, it’s simply too hard to tell how Groupon will handle their current business transition and new accounting practices.

In the meantime Groupon is just selling 35 million shares of the company through the Nasdaq exchange, representative of a 5.5 percent stake which is considered a small float when compared against most typical IPOs. In their SEC filings Groupon warns that the scarcity of shares could cause volatility in pricing over the short term.

On his company’s blog on Friday Grouon CEO Andrew Mason wrote:

“Our IPO is a small milestone on our journey,” while adding, “I feel incredibly grateful to serve as CEO of Groupon. With our IPO behind us, I couldn’t be more excited about what lies ahead.”

Do you think Groupon is over valued at this time?

[Image via Juan Camilo Bernal / Shutterstock.com]

Groupon Shares Skyrocket As Institutional Investors Unload Investments is a post from: The Inquisitr

America may not have defaulted on debt obligations but following the announcement of a debt ceiling deal investors didn’t feel all warm and fuzzy, pushing the Dow Jones down by 266 at the end of Tuesday trading, an eight-straight day of losses.

The Dow fell by 2.2% on Tuesday to 11,867, while the S&P 500 slid 32.9 points and the Nasdaq lost 2.8% of it’s value with a 75.4 point slide.

The slide was put further into perspective when realizing that 90% of the volume on the New York Stock Exchange occurred due to declining stocks.

The eight days of loses which has caused a slide of  858 points is the longest downturn in the economy since the housing bubble burst three years ago.

The sharp decline is also partly to blame on a sharp decline in U.S. manufacturing while data released on Tuesday found that consumer spending fell in June, the first decline in two years.

The market could turn around on Friday if monthly employment numbers are up. The economy is expected to add 57,000 jobs which would put the unemployment rate at 9.2% for the month of July.

Dow Jones Takes 266 Point Stumble Amidst Economic Woes is a post from: The Inquisitr

NYSE Realtime Stock Prices launches today with instant info being made available at Google and CNBC. Both sites pay NYSE a flat monthly fee for the service.

The move follows a similar online option introduced by NASDAQ last month.

More Market Quotes Made Available is a post from: The Inquisitr