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Shares of Coupons.com Inc. (NYSE: COUP) soared more than 102% today (Friday), after the company began trading publicly on the New York Stock Exchange this morning.
COUP stock opened its first day of trading at $27.15 and reached $32.45 this afternoon. That $27.15 opening price was up from the company's offer price of $16 per share.
In the initial public offering, Coupons.com raised $168 million by selling 10.5 million shares. Analysts had projected last week that COUP's offer price would be between $12 and $14 per share.
Today's surge has lifted the market value of the company to approximately $2.2 billion.
Coupons.com was founded in 1998, and as its name suggests, provides digital coupons to its customers. More than 2,000 brands and 700 consumer packaged goods companies use COUP's platform to provide discounts to their customers.
The 2014 IPO market has been flooded with 40 initial public offerings year to date, and the triple-digit gain today from COUP makes it one of 2014's biggest winners so far.
But that doesn't necessarily mean investors should start running to the stock now…
How to Play Coupons.com (NYSE: COUP) Stock
The company generated $168 million in revenue in 2013, which was 50% higher than in 2012. The company has also reported that transactions increased by 43% in 2013, to a total of 1.3 billion.
While the top-line numbers are growing, COUP did report a loss of $11.2 million in 2013. In fact, the company has reported a loss in each of the previous five years.
The bottom line has been unspectacular in recent years, but the company has been paring its losses. In 2012, COUP's losses totaled $59 million – so it's headed in the right direction. In Q4 of 2013, the company reported a profit of $1.5 million.
Clearly, investors wanted in on that growth today.
And while investors who jumped in before Coupons.com hit the market doubled their initial investments, retail investors need to take several factors into consideration before jumping in…