Groupon Misses Expectations

November 12, 2012

A tough week for the market, post-election, so the X Fund cleaned up a bit and prepped itself for more year-end results. Check out this week's best and worst performers.

The AlwaysOn X Fund portfolio finished the week down 4.7%, the NASDAQ was off 2.6%, and the S&P 500 was down 2.4%. Year to date, the AO X Fund is down 1.9%, the NASDAQ is up 11.1%, and the S&P 500 up 10.9%.

Last week, we did multiple trades in the AlwaysOn X Fund. On Monday, we sold our small positions in Baidu and GNC, trimmed some of LinkedIn and Google, and added four new positions in Qihoo 360, Rackspace, Catamaran, and 3D Systems. Additionally, we sold our position in Francesca’s Holdings, sold 2.7% of Lululemon, and added another 2% to 3D on Friday.

Rackspace, the open-source cloud computing leader, reported Q3 results that were in-line with expectations, with +27% EPS and revenue growth. Server count increased by 4.8% to 89,100 vs. last quarter, and total customer base grew 3% to 198,000. For the week, RAX finished down 8.6%.

Groupon missed on revenue expectations, growing revenue at 32%. The stock saw a huge drop, -29.3% on Friday, and finished down 27.7% for the week.

Jazz Pharmaceuticals reported 37% EPS growth and 139% revenue growth in Q3. Its Xyrem drug sales made up 59% of revenue and grew 64% in Q3. JAZZ is now guiding for 115% revenue growth in 2012. The stock ended the week down 2.2%.

To learn more about GSV Asset Management—an investment management firm that leverages GSV Media’s ideas, insights, and philosophy—go to gsvam.com. www.gsvmedia.com.

Michael Moe is an AlwaysOn contributing editor and a former co-founder of ThinkEquity.

About the author

Michael Moe

Michael Moe is the Co-Founder of GSV Asset Management and Advisor to GSV Advisors. He has more than 25 years of investment experience; he co-founded and served as CEO of ThinkEquity Partners, which was sold to Panmure Gordon. Prior to ThinkEquity, Mr. Moe served as Head of Global Growth Research at Merrill Lynch and Head of Growth Research and Strategy at Montgomery Securities. He has testified before Congress on education technology, the new economy and IPOs, and appeared before the President’s Information Technology Advisory Committee. Mr. Moe leads the GSV X Fund and GSV Capital, a publicly traded closed-end fund that invests in leading VC-backed companies. Mr. Moe is also on the Board of Directors of Sharespost, ePals, the National Football Foundation, the College Football Hall of Fame, and The Churchill Club.

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