Groupon Restatement Sparks More Worries

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Groupon already restating earnings is worrying investors? Ya think? :rolleyes:

Trouble arose when the young online deals site said late Friday that it needed to increase the money it set aside for refunds. Now, investors are selling, and some analysts are wondering if Groupon will be able to outgrow its growing pains.
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I am going out on a limb and say there is mismanagement at best and embezzlement at worst going on at Groupon. How can you not make money on essentially a business model of collecting commissions on Groupons sold?
 
JUSTJOEL73 said:
I am going out on a limb and say there is mismanagement at best and embezzlement at worst going on at Groupon. How can you not make money on essentially a business model of collecting commissions on Groupons sold?
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Well I think a big issue is that the market has gotten a lot more competitive since alternatives have shown up. I am not quite sure what their normal profit margins are or how their business model runs, and even though they are currently still the most commonly known daily-deals site, I can't imagine that competitors aren't a factor.
 
Shoulda sold to Google for $6 billion morons. I told you guys this was going to happen.
 
hindsight2.jpg
 
rgratto2 said:
Well I think a big issue is that the market has gotten a lot more competitive since alternatives have shown up. I am not quite sure what their normal profit margins are or how their business model runs, and even though they are currently still the most commonly known daily-deals site, I can't imagine that competitors aren't a factor.
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And that is exactly the problem. Their business model is really unknown. How do they make money or in this case how do they burn it? Do they drive a dumpster truck full cash straight into a furnace or do they shred it one Benjamin at a time.
 
I'm not sure if this kind of business model is really viable. They help their client's sell loss leaders and attract the least profitable type of customers.
 
I Groupon was a good way for a business to get exposure. There were a couple deals that turned me on to some websites that I wouldn't have normally visited. If I liked their product, I was a repeat customer.
However, I have run across just as many deals where the coupon code did not work, and had to spend way more time than it was worth to get it worked out. I still get notified about "deals", but it is very rare that I take advantage of them anymore.
 
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