Using your logic, shouldn't one be bullish on Groupon considering it'll make MORE money once the economy improves ? Using your logic of course....
My real problem with all this negative talk is that it's become a fad.
Groupon is gonna crash! It's a ponzi scheme! It's not worth anything!
Since so much sentiment is against Groupon, I tend to favor it more. Don't get me wrong, they've had a lot of problems, but it's definitely not the total disaster so many make it out to be.
Don't forget that contempt and fear are just as irrational as exuberance and greed.
It might be a fad on the day of the IPO, but if you break Groupon's business model down to its essential elements, it requires a huge number of leaps of faith to rationalize its competitive advantage and revenue potential. Goldman Sachs says they predict 40% growth year over year for the next two years. That sounds extremely fishy to me, given the already-dubious value of the service, the low technical and financial barriers to entry, the lack of loyalty from merchants and consumers alike, the allegations of crooked books, the early cash out for founders and investors, etc., etc. Too rich for my blood, I guess.
And yet Groupon obviously is doing alright.
Using your logic, shouldn't one be bullish on Groupon considering it'll make MORE money once the economy improves ? Using your logic of course....
My real problem with all this negative talk is that it's become a fad.
Groupon is gonna crash! It's a ponzi scheme! It's not worth anything!
Since so much sentiment is against Groupon, I tend to favor it more. Don't get me wrong, they've had a lot of problems, but it's definitely not the total disaster so many make it out to be.
Don't forget that contempt and fear are just as irrational as exuberance and greed.