Nov. 7, 2011 at 2:01 PM ET
Groupon shares surged 30 percent from their offering price on the first day of trading Friday, but activity cooled a bit on Monday. Groupon shares were trading lately a bit under $26 a share, little changed from their Friday close.
That follows a pattern for hotly anticipated initial public offerings, which frequently surge from a price that was only available to big or well-connected investors, but then taper off.
"If you bought at LinkedIn's IPO price (of $45) then you've seen some gains, but if you bought at the end of the first day then you're down," Scott Rostan, adjunct professor at Kenan-Flagler School of Business at UNC-Chapel Hill, told Reuters.
Some analysts recommended that investors wait 60 to 90 days for analysts to weigh in with their ratings, according to the Reuters story. One expert suggested waiting about six months until a "lock-up period expires" and insiders are allowed to sell their shares.
The Associated Press notes that some analysts have questioned the sustainability of Groupon's business model.
For more on the debate, click on the video below: