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.

Comments

Re:Show me the money

[aldousd666]

they only floated 5% of the company shares. principals all had a nice ejection seat.  the stock price goes up on the first day because everyone wanted to borrow it so they could short it.  the IPO underwriters make a fee on the offering, the principals cash out, some early bird flippers turn a profit on people looking to supply the borrow or cover their shorts, and they exit too. who's left? the market bagholders who get excited about 'new technology booms' from watching CNBC over their orange juice. it's basically a ponzi scheme.  I hope they drown in it.

Re:Business are getting smarter, too

[stwf]

Yes, and its very disrupting to the current clientele. Our yoga studio offered a groupon and what we got was a month or two overcrowded classes, and a bunch of angry regular customers who want to know why they are paying so much more for their classes. She ended up having to extend the offer to everyone for a month to quiet them down.

Plus the GroupOn people were almost universally idiots.