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$750 million for Groupon - I don't think so, says Forrester Analyst

by MaxReferrals
6 replies
Despite declining $600 million from the mighty G earlier this year, they file their own $750 million IPO now in the midst of one of the WORST public offering climates in the U.S.

Forrester analyst doesn't think Groupon is worth it.

Open letter to investors, she's questioning expenses, profitability and prospects for growth.

Newsmakers - How much for that Groupon? - Internet Retailer

God bless public market capitalism.
#$750 #analyst #forrester #groupon #million
  • Profile picture of the author Charles Jones
    It was ACTUALLY a $6 BILLION offer from Google and that was late last year.

    Yes, they hit their head too many times I think by not taking that offer. One thing I will say....$760 million is not that much considering their profit margins. They are on track to make about $2 Billion form the reports I heard this year alone....3-5X earnings and that makes them in the neighborhood of a $6-10 Billion valuation. Again, YMMV depending on what you think of "valuations"....but they should trade or be worth a multiple of earnings.

    Oh yeah, the only reason I know alot of about the figures is that I own a "deal of the day" website....gotta know your competition....well they are the Walmart to my local store in this marketspace.
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    • Profile picture of the author KirkMcD
      Originally Posted by Charles Jones View Post

      They are on track to make about $2 Billion form the reports I heard this year alone....3-5X earnings and that makes them in the neighborhood of a $6-10 Billion valuation.
      That 2 billion number would be for revenue, not earnings.
      They have had no profits yet.
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  • Profile picture of the author mclpro
    That's why we should go above and beyond groupon- Above and Beyond GroupOn With Cross-Channel Marketing
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    Dan Verhaeghe
    Marketing Specialist
    McLoughlin Promotions
    http://www.mcloughlin.ca/insights
     http://www.twitter.com/mclpro

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  • Profile picture of the author Scott Ames
    I would have taken $6 Billion in a heartbeat and played the rest of my life. Their choice but I seemed like a win-win to me. Now they have to slug it out in the IPO arena and prove profitable eventually or the stock will tank.
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    Success consists of going from failure to failure without loss of enthusiasm. -Winston Churchill

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  • Profile picture of the author sidejobdotcom
    Groupon was worth 6 billion....now what do you think they are worth? Probably 10 times that.

    From what I understand Groupon rewards folks a one time reward for sharing with others. I do, however, think many of the people will lift anchor and go to TCA who offers 5% on 5 levels with infinite width for doing the same thing. So instead of just getting rewarded once, people will get rewarded everything that person they shared with makes a purchase...forever! If that person invites a business they get an additional 2% override. TCA is the perfect free business and now you know why.
    Al
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    9 year old company now paying up to 1 million levels deep.

    https://www.sidejob.com
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