Monday, October 31, 2011

And Now Another Analyst Says Groupon Is Worth Less Than The IPO Price...

Media_httpstatic7busi_pciji

Well, that makes three of us.

Last week, I ran some numbers on Groupon and concluded that the company was probably worth $6-$9 billion, well below its contemplated IPO price.

Given the risk in the company's transition to profitability--chopping back marketing spending, revenue deceleration, intense competition, backlash against the product--this led me to conclude that the stock wouldn't really offer a compelling value unless it were valued at $5 billion or below.

Posted via email from Inspiration

No comments:

Post a Comment