(By Balachander) Groupon Inc. (NASDAQ: GRPN) shares spiked in Tuesday trading after a hedge fund disclosed a 9.9 percent stake in the daily deal website.
Tiger Global Management acquired 65 million shares in Groupon, representing 9.9 percent of the company, a filing with the U.S. Securities and Exchange Commission (SEC) showed.
Shares of Groupon have retreated 84 percent since making public debut in November 2011.
Earlier this month, Groupon posted weaker-than-expected quarterly revenue amid continued challenges in Europe. Total cost of revenue more than doubled in the third quarter.
[Related -Groupon Inc (GRPN): RBC Upgrades Recommendation, With 16% Downside – Say What?]
Net loss was $3.0 million or $0.00 per share for the third quarter, compared with a loss of $54.2 million or $0.18 per share in the comparable period of last year.
Revenue rose 32 percent to $569 million. North America revenue jumped 80.5 percent.
Total cost of revenue more than doubled to $182 million from $68 million in the third quarter of last year.
The company projects fourth-quarter income from operations between $0 million and $20 million on revenue between $625 million and $675 million, while analysts expect revenue of $641.0 million.
The stock, which has been trading in the 52-week range of $2.60 to $26.90, traded 13.04 percent higher at $3.52 on Tuesday.