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Is Groupon's IPO overvalued — and what does it mean for other tech IPOs?
I use Groupon all the time it is not
gambling
, it's pretty serious money saver for customers and client giver to businessmen.
Herbert Miro, Groupon - November 16, 2011
The Groupon IPO has been a topical issue generating a flurry of reactions....my take however is that the market responded to the offering based on its estimation of future cashflows accruable from the venture..indeed it does look like a viable business model....The caveat is that one should also consider the fact that Groupon contends with a toxic mix of net losses, increasing expenses, growing competition etcInvestors shouldn’t expect profits anytime soon, since Groupon has failed to deliver a net profit in its first three years of operations. It's been reported that this trend may likely continue as Groupon itself has stated that expenses “will increase substantially in the foreseeable future.”Furthermore, the competition in the deal-sharing marketplace is just getting started and I believe given the LOW barriers to entry, Groupon could face considerable competition from various start-ups.
Tomi Ogunlesi, Strategic Planning Associate, Lowe and Partners Worldwide - November 29, 2011
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