At least four Groupon investors who held stock in the daily-deals company before it went public have sold or significantly pared back their holdings in recent months. Since its initial public offering in November, Groupon has shed more than three-quarters of its stock-market value, or about $10 billion.
Msg#: 4486485 posted 3:35 pm on Aug 20, 2012 (gmt 0)
very low barrier to entry market, novelty wearing off, plenty of time for suppliers to work out the profitability the business model for them curious market, was interested once, long before i heard about groupon, ,,
Msg#: 4486485 posted 8:13 am on Aug 21, 2012 (gmt 0)
It's just that folks expected massive returns. They have to expect smaller returns over longer periods of time
I'd say widespread overpaying due to unrealistic expectations is a pretty good definition of a bubble.
I just don't understand how it's happening again, only 10 years after an identical problem. I get that the banks are just executing an exit strategy, but how are they getting the mugs to buy into the IPO?