The lockup expired today from Groupon's November IPO. And boy, is it obvious.
The daily deals giant sank 10%, falling well below $10 to a new low. The Wall Street Journal reported that the volume on the stock trading doubled the 30-day daily average in just one single hour.
Groupon is now less than 50% of what it debuted on the stock market for. New investors are extremely wary of buying the company at this discounted price because there are still many investors with significant stakes that would likely love to sell were Groupon's share to climb again, which means a comeback will be difficult for the company—and possibly reversed should it manage to happen anyway.