Re: Can't make sense of their service
Michael Shmarak
5/10/2011 10:56:40 AM
Here's the difference with LinkedIn: there is a defined purpose and vision with the company and the people who run it know their audience. Will it be the largest IPO out there? Doubtful. But is it among the smartest? Definitely. It's proven in many ways how LinkedIn improves people's efficiency, networking, growth, etc. Stuff like that resonates with investors. I don't see how Groupon will be affected other than viewing the pulse of the investor market. Groupon willl still be priced out of the park; I wish them good luck. It takes a lot of chutzpah to do what they're doing.
Re: Can't make sense of their service
Tenacious
5/10/2011 8:38:44 AM
Well, you could take my seat on the LinkedIn IPO train. What do you think Michael? Will the success or failure of LinkedIn have any impact on the decisions made at Groupon?
Can't make sense of their service
Value Hiker
5/10/2011 2:04:32 AM
I assume that I am a normal consumer. I tried groupon and so far not really impressed with their service. Before netscape, ebay, google's IPO, I used their service and was really impressed with the service they provided. But for Groupon, I just can not find their service is even useful. What does Groupon offer, just some cosmetic product or discounted massage. I know Groupon is heavy on marketing product to young working female, but how can I not find anything that remotely interesting?
I guess ignoring the Groupon IPO may be good for my portfolio. Maybe it is a mistake, but there is always another train, right?
You're not the only one who thinks Groupon has a hard time valuating itself. I know people around here who wonder the same thing--and some of them work closely with Groupon.
What is Groupon worth to the customer? Or to the market?
They're difficult questions. On the positive side, we know a good sales channel is worth a lot of gold - think Wal-Mart today or Sears during the Eisenhower administration. Will Groupon become anything like E-bay? If so, the IPO is worth whatever the price is.
On the negative side - we're talking about a company that - allegedly - turned profitable not too many quarters ago and operates in what seems to most commenters to be a crowded market.
I follow Buffet's idea that it's not a wise investment if I don't understand how it's really going to make money. Maybe I"m just missing the next big thing, but that's where I am with Groupon right now.
Hi Chaos--
Thanks for the comment; I had given thought to the legal ramifications but didn't have enough room in the post.
The topic you bring up is the very issue with Groupon's model--what is the product or service truly worth to the customer. I am unsure of the answer.
What do you think?
Let's say it offers $250 worth of Groupon common stock for $125.
That offer invites a class-action lawsuit - the stock isn't worth $250 if it's selling for $125. May just be a change in terms but they could offer 250 shares for $125. Even talk about a $1/share value at par, if they were careful to explain par.
Selling IPO stock in a Groupon-type format would be a ground-breaking move. Even better it could give a large number of new stockhoders an unmatchable reason to prefer Groupon over all the imitators.
Re: Re : Will Groupon Make a Deal With Its Own Stock?
TelecomFreq
5/9/2011 1:55:36 PM
by the same token there are a ton of sites that do search but Google still has most of the business. I think a lot of that has to do with their creative marketing, and branding. Just because others can do what you do, dosnt mean they will be able to do it as well.
Re : Will Groupon Make a Deal With Its Own Stock?
yalanand
5/9/2011 1:22:32 PM
I feel the problem with this model is, this models is too easy to copy. You can’t patent a coupon. Unless Groupon have some kind of technology that gives them an advantage other than popularity, they will only be one of dozens of sites just like it within a matter of years.
Re: what's the deal with Groupon?
TelecomFreq
5/9/2011 10:19:22 AM
Very true that offering a Groupon for their own stock would be outside the box, but would it work for more then just the IPO?
and if there are issues with it the first time it is offered then that could hurt the chances of it happening again in the futur, and maybe hurt the company overall.
I think it is a very good idea, and really coudl shake things up, but Groupon would really need to make sure it is done right so it can be done again.
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