Groupon Inc Common Stock (NASDAQ: GRPN) is spiking early on in the trading session this morning, trading on gains of more than 3%. While the company hasn’t issued any news, there seems to be a good reason for the gains. Chatter suggests that a takeover may be ahead. Here’s what’s going on:
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
GRPN Stock Is Headed Up On Takeover Chatter
At the moment, Groupon is spiking with no news or SEC filings issued. So, what’s the deal? Well, there may be a deal in the works.
According to Dealreporter, Groupon may reach a deal to be acquired relatively soon. The report does not suggest who the suitor may be, nor what price the company may sell for. Nonetheless, the rumor is spreading and investors are making moves on the chatter.
Keep in mind, Mike Randolfi, CEO at GRPN, recently announced that he would be stepping down. Considering recent declines and the recent management shakeup, there may be something to this chatter.
Be Careful
I cover takeover chatter quite often. The truth of the matter, chatter like this makes moves in the market every few days or so. Through my coverage on takeover chatter, I’ve also found that this is the most common way that the market of today is manipulated.
While an acquisition of GRPN would be exciting for it’s investors, it’s important to keep in mind that only a very small percentage of rumors like this prove to be true in the long run. This makes trading on chatter a very risky play.
So, only experienced traders should make a move on this news. Even then, it’s important to consider the risks before making your move.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
Don’t Be The Next To Miss The News
Join our free mailing list below to receive real-time news alerts!