Alibaba buys nearly 33 million shares of Groupon

Alibaba has bought nearly 33 million shares of online daily deal service Groupon.

Groupon Inc.'s stock jumped more than 40 percent in afternoon trading Tuesday.

The purchase gives the Chinese e-commerce powerhouse about a 5.6 percent stake in Groupon. Alibaba disclosed the purchase in a regulatory filing on Friday.

The news comes shortly after Groupon reported a fourth-quarter adjusted profit and revenue that beat analysts' expectations.

Last month Alibaba Group Holding Ltd. reported better-than-expected third-quarter results as it benefits from a shift to mobile spending and a growth in users.

Shares of Chicago-based Groupon added $1.17, or 40.4 percent, to $4.06 in afternoon trading Tuesday. U.S. shares of China-based Alibaba rose $5.97, or 9.8 percent, to $66.86.

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