The company surged for a second straight trading day after Alibaba bought a 5.6% stake in the online marketplace.
According to a regulatory filing, the e-commerce company bought 33 million shares of Groupon, making it the fourth-largest shareholder in the website that has lost about 80% of its value since going public in November 2011.
Groupon’s shares jumped 41% to $4.08 at the close in New York, the biggest one-day gain since the company’s initial public offering. The stock has soared 82% in two days, combined with its 29% gain on Friday.
Alibaba’s stake was reported a day after Groupon reported Q4 results that beat analysts’ estimates, driven by purchases in North America. The company said profit, excluding some costs, was 4 cents a share, compared with the average analyst estimate for a break-even quarter.
Even with the gains, the shares are down 49% over the past 12 months.
“We bought a very small minority stake in Groupon in order to share ideas between US and China markets,” Alibaba said in a statement. “This is a passive holding and if Groupon management would like to exchange experiences with us, we are prepared to share.”
Alibaba has also accumulated stakes in other US companies, including Jet.com, Magic Leap and Lyft.
Bill Roberts, a Groupon spokesman, said that the company hadn’t been aware of Alibaba’s stake until the filing. He said: “Alibaba has a reputation as a long-term holder, and we’re pleased that they take the same view of Groupon’s opportunity and execution as we do.”