Concerns Growing Over Groupon Even As Market Recovers (GRPN)

Groupon, Inc. (NASDAQ: GRPN) has now been cut in half since its IPO.  The social couponing leader was one were vocal about with warnings over the price over and over going into, as well during and after, the IPO.  If you looked at the tape activity in Groupon shares alone today, you would have maybe guessed that the DJIA was down 300 points or so.  Nope… the DJIA rose 291.23 to 11,523.01 on the day.  That is up 2.6%, but Groupon closed down 9% at $15.24 today.  This may have been exacerbated by the short interest report we gave earlier but the real issue at hand is the valuation versus the future earnings power, as well as a poor share class structure, no barriers to entry from competitors at all, and the ongoing expense versus revenues.

Again, this no “We told ya'”… Sadly, just because this is down more than 50% from its post-IPO does not mean that this is a bargain.  Groupon still has a market value of $9.72 billion.

From a busted IPO to just busted…