LifeinAsia - 10:29 pm on Jun 2, 2011 (gmt 0)
maybe this is why I'm not a billionaire yet but I just do not understand how a company that lost 413 million last year and is on track to lose more money this year can be valued at $25 billion.
As they used to say in the 1990s, "They make up for it in volume."
Amazon bled millions for years. Look at it now.
That said, I'm not sure that I would want to invest in Groupon. Given the rapid increase in competitors (especially Google), I'm not sure it's decrease in losses will continue at the same rate (in other words, not sure it's going to be rise to profitability the way Amazon did).