Groupon, which at one point traded for more than $26 a share, has dropped to $15.24 and continues to drop in after-hours trading. That’s nearly 25% down from its $20 IPO strike price.
At $26, Groupon was worth around $18 billion. At $20, it was worth $12.7 billion. And at $15.24, it’s worth just $9.72 billion.
This is a freefall that’s feeding upon itself. It’s going to stop at some point… the question is at what price.
I never thought I’d say this: I’m starting to think that Groupon should have taken Google’s $6 billion acquisition offer. I’m going to wait for Groupon trading to normalize though before I call that one.
Groupon didn’t need to take Google’s $6 billion deal. Â The founders sold out at a much higher valuation than that this summer. Â As for the rest of the shareholders, none of the directors cared.
BINGO
So you thought it ever was worth more than $6 billion offered by Google?
Whom are you kidding.
Time to finally end this inglorious hype.
Them problem with Groupon is its business success was based on a nonproprietary concept. Unfortunately for Groupon they weren’t able to apply a patent or trademark to their concept.
I’ve been trying to figure out why they didn’t apply for a patent? I’ve been curious about this forever.
How come they were unable?
There are plenty of good players in this area and everyone can easily copy Groupon’s business concept.Â
The thing is that people at first bought the stocks just because of the company name but didn’t check financials and they aren’t that stunning Â