Groupon filed papers for a 750m IPO
had a net loss in 1st Q 2011 - Spending money to expand.
Here is the key data from the Morgan Stanley (lead Underwriter), Goldman Sachs and Credit Suisse-led IPO:
DealBook: Groupon Plans I.P.O. With $30 Billion Valuation
Groupon, part of an elite club of social Internet companies that is fanning investor ardor for the next generation of technology giants, is planning a debut that could raise $3 billion.
I get that it's going to pop the day of, which is why I'll be in. But long term? I wouldn't touch this equity with somebody ELSE'S money. They're watering themselves down too much in an effort to prove how profitable they can be. Really? Groupon deals on electronics? What are they trying to become, Woot? Unless they're hoping an Amazon swoops in and buys them out, this is not going to end up well for them. It's already to the point that navigating their site to see all the deals is becoming a hassle - to say nothing of the fact that their offerings of late have been pretty lackluster due to businesses realizing just how much a deal with the devil partnering with them is.
We're in agreement. I plan on dumping mine right after the initial snap-up frenzy is over (though I'm somewhat bummed that I didn't get allocated as many shares as I wanted). I mean seriously, they're valuing the company at 12 billion?
This stock REEKS of SMT all over again.