Is Groupon A Real Business Model

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Been watching this for a year or more. Friday they began trading on NASDAQ (GRPN) at the IPO of $20. Stupid money ran it to $31 and change and it settled out at $26.10. I can't get a single model of this stock to come out over $6. I haven't liked the random business model since they sent me about 100 coupons for Supercuts (check out my Avatar). I also got about a zillion for an outfit called Shapes. I'd never heard of it but it turns out to be a gym for women catering to the chunky monkey crowd. I have one junk Gmail just for coupons, mostly grocery, and there are hundreds of unopened Groupon emails in there. They raised $700,000,000 in the IPO which I'm guessing will take them less than a year to burn through depending how much and how fast the executives steal. What happens then? Also, what happens when Amazon or big G decide to out Groupon Groupon? Anyone think this company is long for this world?

Thomas
  • Profile picture of the author Enfusia
    Hi, no they are not long for this world. Just 2 days ago there was an article on CNN web news that said they are like the tech bubble and will burst soon.

    Then yesterday there was a MSN article saying that most Groupon clients (the businesses are really not happy and lose money on the deal).

    So, looks like they are on their way out.

    Patrick
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