In a move unexpected by experts, and unusual for Internet base IPOs; Groupon (GRPN on NASDAQ) fell below its initial price after only 21 days of trading. The Chicago based company, which acts as a local e-commerce marketplace connecting consumers with discounts thorough daily emails, began trading on November 7th, 2011 at more than $25.00 per share. At the close of business on November 28th, the stock was trading at less than $15.25 per share.
The stock was able to maintain its value for several trading days after the initial offering but began to show signs of instability as early as November 14, when CNBC reported it had been given a “sell” rating by Northcoast. Despite the poor rating, Groupon continued to maintain its value until November, 22 when it first dipped below the initial offering price of twenty dollars per share. Any thought of a rebound was squashed following a Wall Street Journal article on November 25 indicating that the company had failed to show any long term profitability. Despite the negative outlook imposed upon the company, several trading experts have listed them as a stock to “watch”.
The recent fall is concerning for Groupon as it struggles to hold onto a market valuation of approximately $10 billion. This comes shortly after the company rejected a $6 billion dollar buyout offer from Google prior to the IPO. Analysts have cited strong competition from sites like Living Social, which recently expanded its offerings to include gift cards, while Groupon maintained its model. As of 3 PM today, the stock had rebounded up 0.87% and was trading just over $16.00 per share.

The trust of Americans in different kinds of institutions fell last year as the relentlessly high unemployment rate weakened the confidence of people in government and business, a recently released study discovered.

The drop in United States’ trust in business occurred amidst an overall worldwide increase. The global increase is driven by the swelling confidence in fast developing economies that includes Brazil and India, the Edelman Trust Barometer revealed.

The study found that only 46 percent of Americans said they trusted business. That is 8 percent down from 54 percent the previous year.

The study was released on Tuesday. It was performed by Edelman U.S., a public relations firm. According to Matthew Harrington, the chief executive of Edelman U.S., the rebound last year was a tiny piece of euphoria. He said this year shows more of the reality that it is going to be a long toil.

Some 56 percent of the respondents worldwide said they trusted business, which is up from 54 percent last year. Respondents in Brazil, India and France influenced the general increase in confidence.

In Brazil alone, 81 percent of the total respondents said they trusted business. The figures increased from 62 percent in 2009.

Harrington said the results show an evident sense of optimism. It tells the fact that their economies are doing well, and that both home-grown and business from abroad are investing in their countries.

Brazil’s economy bloomed back in 2010 after it has shortly declined in 2009 because of the recession. They have grown an estimated 7.4 percent rate.

In comparison, the economy in United States is still struggling with the high unemployment rate. It has remained above 9 percent for the past 20 months. Certain analysts look for possibilities that GDP will grow around 2.5 percent this year.