Groupon Shares Fall Off a Cliff, Down 42%

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Whoddathunkit? Groupon shares are in the crapper and getting worse by the day. Damn, if only there was a website where people could all get together and buy some stocks at a discounted price. ;)

Since Groupon went public, the company's stock has declined 41.63 percent, and by the look of things, the drop could continue until shareholders start to see some positive financial news come out of the company. The issue is, Groupon has never been profitable. Last year, for example, the company lost $390 million on $313 million in revenue.
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Big surprise...the stock market makes no sense whatsoever...hasn't the lat few years proved that?
 
eh.... so many identical website all around... dude should have sold it to google.
 
Shocking; the connected, moneyed interests that are able to get in early made out like bandits while leaving other people holding the bag afterwards.
 
Fools and their money are soon parted ... and with Groupon, it is done at a discount! ;)
 
rofl

Hilarious. If only I had access to the IPO at a reasonable amount of money, sold it all off after the first 48 hours or so and then started to short the hell out of it.
 
fps4ever said:
Big surprise...the stock market makes no sense whatsoever...hasn't the lat few years proved that?
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This actually is one time the stock market --DOES-- make sense. Company makes no profit? Company share prices decline. That seems somewhat logical. The fact that they have a share price makes sense too b/c Groupon itself must have servers, staff, capital, real-estate, that if liquidated would be worth something. Since stock prices are also somewhat speculative based of possibly future income earnings, you'd expect no profit to be a fall in income.
 
WBurchnall said:
This actually is one time the stock market --DOES-- make sense. Company makes no profit? Company share prices decline. That seems somewhat logical. The fact that they have a share price makes sense too b/c Groupon itself must have servers, staff, capital, real-estate, that if liquidated would be worth something. Since stock prices are also somewhat speculative based of possibly future income earnings, you'd expect no profit to be a fall in income.
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That's all well and good, but how did it become 42+% overvalued in the first place?

Random internet coupon site with a bunch of hype, minimal assets, debt, and no solid business plan. Oh, and they had never made a profit. Ever.

IPO valuation? ELEVENTY BILLION DOLLARRRSSSS.
 
SilverSliver said:
That's all well and good, but how did it become 42+% overvalued in the first place?

Random internet coupon site with a bunch of hype, minimal assets, debt, and no solid business plan. Oh, and they had never made a profit. Ever.

IPO valuation? ELEVENTY BILLION DOLLARRRSSSS.
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Right, the whole reason Groupon is a joke is because of the overvalued IPO. That, and the fact that their area of businesses has no real potential for continued growth:

1. Deals of the Groupon flavor are unsustainable, as Groupon gets a huge cut and the business is left with new cheapassed customers who might not come back.

2. There are already a billion copycat sites because the start-up costs for a business like this are near-nothing.
 
Methadras said:
The market is an emotional animal. That's all its ever been.
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The EU has reached a deal! Up we go 300 points!
Next day: Oh no, Silvio Berlusconi is still a douchebag! Down 350!
Next day: Well maybe Silvio is just misunderstood...seems like a cool dude! Up 200!
Next day: Perhaps that deal isn't so good after all...down 300!

Repeat ad naseum. It's amazing how the same information, looked at different ways, can raise/drop the DOW 300 points the very next day.
 
Not really surprising. They were WAY over valued from the getgo. I expect their stock value to continue nose diving until they're actually valued at something reasonable. I'd be surprised if it's actually worth more than a couple bucks per share.
 
Too many other sites doing the same thing and killing off interest in the real thing.

I haven't seen a Groupon worth a a second glance in months. They went from "1/2 off steak dinner in (insert population hub)" to "5% off colonic Wednesdays at 6AM in (insert distant random town)" in a matter of months.
 
It was all just another pump and dump. Not sure why people didn't see that to begin with.
 
I don't understand how it is possible for them to loose so much money. A business requests a coupon from them, they post the coupon on their website and collect 50% of sales revenue. How does that require spending $600 million / year? There is little/no need for human intervention, little/no infrastructure required, and now that their brand is so big, little/no need for advertising. They should be rolling in dough.
 
thefreeaccount said:
I don't understand how it is possible for them to loose so much money. A business requests a coupon from them, they post the coupon on their website and collect 50% of sales revenue. How does that require spending $600 million / year? There is little/no need for human intervention, little/no infrastructure required, and now that their brand is so big, little/no need for advertising. They should be rolling in dough.
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Hookers * Blow^2 = 600 million dollars
 
thefreeaccount said:
I don't understand how it is possible for them to loose so much money. A business requests a coupon from them, they post the coupon on their website and collect 50% of sales revenue. How does that require spending $600 million / year? There is little/no need for human intervention, little/no infrastructure required, and now that their brand is so big, little/no need for advertising. They should be rolling in dough.
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I guess they actually send people out to these businesses to try to convince them to make a deal. Pretty faces cost money.
 
And as far as the modern "market" goes, read up on High-Frequency-Trading algorithms and front-running. That's how markets move. The traditional, MSM-created story of the market moving on and reacting to "news" coming out of governments or corporate press releases is nothing more than a myth.
 
wizdum said:
I guess they actually send people out to these businesses to try to convince them to make a deal. Pretty faces cost money.
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blowing money trying to get deals cost money. And that is where poor business comes into play. I've seen what business guys will spend to make some sales but when they have the money to do so. In their case they should keep things simple until they can afford more upscale methods. send out letters, emails and make phone calls. if you do send somebody out in person only send them out to larger places and only every so often. Make sure that your cost are less then what you make. Otherwise what the hell is the point.
 
the-one1 said:
BECAUSE.....because......bec....be......b........F^%$....who the F^%$ knows!:confused:
Them and FB.
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FB at least makes sense given that they at least have the only "tangible" thing in the digital era: information
 
All of these companies are going to go under soon. Businesses are getting fucked by them and everyone knows it. It isn't good advertising, and it just loses them money.
 
hopefully they'll have some groupon deals for their pricing for stock. 2 for the price of one maybe?
 
thefreeaccount said:
I don't understand how it is possible for them to loose so much money. A business requests a coupon from them, they post the coupon on their website and collect 50% of sales revenue. How does that require spending $600 million / year? There is little/no need for human intervention, little/no infrastructure required, and now that their brand is so big, little/no need for advertising. They should be rolling in dough.
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You should see their offices in downtown Chicago... There was an article about it somewhere but basically they are spending like rusian mobsters. Ridiculous splurges like segways for all of the execs to ride around the office and a full indoor basketball court and other crap like that. Idiots...
 
There's an article about Groupon in the Dec. 2011 issue of "Maxim" mag. The author of course makes it seem like a great company with a great future, but did mention some caveats. It was written just before Groupon's IPO.
 
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