Is it too late to think about shorting this stock?
Current market cap (equity value) is $6.8bn, with negligible income. It'll be interesting to see how much longer GRPN takes to trade at fundamentals.
Groupon Plunges as Board Members Reportedly Leaving
11–20 of 94 posts
Re: Groupon Plunges as Board Members Reportedly Leaving
#12Could this be the beginning of the end of Bubble 2.0? I understand this is just one company, but what I'm wondering is if this could have a domino effect.
Groupon is hardly even a tech company, and their business model is one that has been seriously criticized since the outset. There will be little collateral damage from their decline.
Re: Groupon Plunges as Board Members Reportedly Leaving
#13When a director with a lot to lose (Howard Schultz) leaves so suddenly, one can guarantee that there's something coming which significantly threatens his position outside Groupon and/or reputation. So much so, that he is willing to piss off investors, employees and co-directors by upping and leaving. I suspect that the writing is on the wall for Groupon. I'm going to predict that it won't see 2013 without serious res…
Note he's also being replaced by a VP from Deloitte and AMEX's CFO
"With their deep financial, accounting and operational experience"
hmm.... I wonder why they'd need financial and accounting help.
Re: Groupon Plunges as Board Members Reportedly Leaving
#14When board members quit unexpectedly like this it usually means they have discovered that the management is doing something unethical and they don't want to be held legally liable for it, which they would be if they stayed. This is likely a sign that we're going to see another scandal or two coming out of Groupon in the next few months, possibly one that tanks the company completely. Wall Street knows this, which is…
Besides the occasional unethical sales methods by some of its employees, were there any other scandals that I'm not aware of?
Re: Groupon Plunges as Board Members Reportedly Leaving
#15What I'm wondering: are any of Groupon's competitor's (AmazonLocal, LivingSocial, Google Offers, etc.) more likely to succeed? Or is the business model the biggest problem here?
Re: Groupon Plunges as Board Members Reportedly Leaving
#16Could this be the beginning of the end of Bubble 2.0? I understand this is just one company, but what I'm wondering is if this could have a domino effect.
I think that at most it will make investors maybe think twice about the potential of a company. For the most part there shouldn't be any adverse affects on other companies. Especially the other ones that have gone IPO recently, they're all doing well.
Re: Groupon Plunges as Board Members Reportedly Leaving
#17When board members quit unexpectedly like this it usually means they have discovered that the management is doing something unethical and they don't want to be held legally liable for it, which they would be if they stayed. This is likely a sign that we're going to see another scandal or two coming out of Groupon in the next few months, possibly one that tanks the company completely. Wall Street knows this, which is…
Besides the occasional unethical sales methods by some of its employees, were there any other scandals that I'm not aware of?
The 'creative' accounting on their initial IPO paperwork was a scandal of sorts, but I don't think it left the IT blogosphere.
Re: Groupon Plunges as Board Members Reportedly Leaving
#18When board members quit unexpectedly like this it usually means they have discovered that the management is doing something unethical and they don't want to be held legally liable for it, which they would be if they stayed. This is likely a sign that we're going to see another scandal or two coming out of Groupon in the next few months, possibly one that tanks the company completely. Wall Street knows this, which is…
Besides the occasional unethical sales methods by some of its employees, were there any other scandals that I'm not aware of?
Presumably the board members are leaving because of a yet-to-be-public scandal.
Re: Groupon Plunges as Board Members Reportedly Leaving
#19Could this be the beginning of the end of Bubble 2.0? I understand this is just one company, but what I'm wondering is if this could have a domino effect.
Groupon is hardly even a tech company, and their business model is one that has been seriously criticized since the outset. There will be little collateral damage from their decline.
Pets.com was not ostensibly a tech company either. Their business model was also criticised. There was much collateral damage from their decline.
Re: Groupon Plunges as Board Members Reportedly Leaving
#20What I'm wondering: are any of Groupon's competitor's (AmazonLocal, LivingSocial, Google Offers, etc.) more likely to succeed? Or is the business model the biggest problem here?
I'm guessing the business model, or at least Groupon's implementation of it. The stories of companies who lost absurd amounts of money on Groupon deals and made none of it back are starting to pile up.