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Groupon Not Doing So Well On Wall Street
bdking writes "Shares of the daily-deals site were up Tuesday, but Groupon's ride on Wall Street since going public in early November has been almost all downhill. And there's no evident catalyst to reverse the slide."
From the looks of it, Groupon is blowing all of its money attempting to expand in the face of ever-growing competition in a market with trivial start-up costs.
Yea, I'd recommend you stop referring to yourself as a 'trader', as if you make the statement "An IPO is always a bad buy-in" you are not a trader in any sense of the word. Yes, Groupon was a shitty IPO and so was Linkedin, and Facebook likely will be as well, but that hardly means all IPOs are a bad bet. As a general rule, IPOs of companies that already have high public visibility are dangerous, as the day traders will overvalue the IPO based solely on name brand recognition and a desire to get in on what they incorrectly perceive as the "ground floor". But IPOs of less heralded companies that actually have a good business plan is how very smart people make heaping piles of money. And the high profile companies can pay off pretty well at times, I'm gonna say the people who bought Google at $85 on their IPO probably don't consider their investment a "bad buy in".