Why Groupon, Inc. Stock Rose 17.1% in September

Groupon (NASDAQ: GRPN) stock increased 17.1% in September, according to data from S&P Global Market Intelligence. The gains are attributable to momentum from the previous month's earnings beat, a favorable start for a new service, and increased investor confidence in the company's comeback initiatives.

Following better than expected quarterly earnings results in August, Groupon introduced a new service in September and is enjoying momentum that has driven its share price up roughly 50% year to date. Groupon+ debuted in 23 U.S. markets on Sept. 6 and offers coupon-less cashback from roughly 1,500 local restaurants. Groupon has plans to expand the regional availability of the service and branch it to new types of businesses, and some early reports see the new offering gaining traction.

The market also seems to be looking favorably on the company's efforts to move away from physical goods sales and focus more on local deals in its best performing geographic segments.

Source: Fool.com