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(Reuters) Followup Groupon IPO shares soar to $31, market cap near $20 billion. That's a lot of spa treatments and awkward wine tastings   (reuters.com) divider line 31
More: Followup, U.S. IPO, market cap, spa, Pandora Media Inc., Internet radio, Credit Suisse  
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488 clicks; posted to Business » on 04 Nov 2011 at 5:46 PM   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»   |    Get this fabulous T-Shirt and impress the methane out of your friends! shirt it!



31 Comments   (+0 »)
   
 
2011-11-04 05:48:02 PM
Wait. Is it the late 1990's again?
 
2011-11-04 05:57:19 PM
Right about now, employees of the company who are holding options are going nuts. They're probably celebrating with champagne and having a wonderful time. During the lockout period, they will watch the price sink lower and lower, and by the time the lockout ends, many of them may be out of the money. I've been there - it's not a fun place to be.
 
2011-11-04 06:14:12 PM
Lots of people are going to lose money on this... and a small number of people are going to make millions.
 
2011-11-04 06:15:16 PM
Wow, people are apparently a lot dumber than I could have possibly imagined.
 
2011-11-04 06:24:57 PM
Short it. And RIM too.
 
2011-11-04 07:05:15 PM
Hey, I've got a couple thousand worth of Flooz. Anyone want to trade me for some Groupon stock? They'll be right around par in, I'd guess, around nine months.
 
2011-11-04 07:28:21 PM
And it will continue to go up now that the suckers can get in on it. Let me know what it is a year from now, or even sooner, when the rest of the world figures out that whatever Groupon does hundreds of others can do, many of them even better.
 
2011-11-04 07:31:33 PM
Lets wait six months to a year whether or not turning down a deal from Google for $6 billion was a good idea.
 
2011-11-04 07:37:58 PM
There's a sucker born every minute.
 
2011-11-04 07:45:56 PM
Funk Brothers: Lets wait six months to a year whether or not turning down a deal from Google for $6 billion was a good idea.

It will be surprising if it takes that long.
 
2011-11-04 08:07:36 PM
Marcus Aurelius: There's a sucker born every minute.

Mr. Barnum approves.

This way to the World's Greatest Egress!
 
2011-11-04 08:11:07 PM
Correct me if I am wrong, but I believe they only made 6% of stock available for purchase...

Seems like a great way to artificially inflate a price of a company.
 
2011-11-04 08:21:36 PM
pudding7: Short it. And RIM too.

Not surprised if this is coming.
 
2011-11-04 08:35:02 PM
WUPHF.com!

Farking stupid. Any broker that recommends this stock to a client deserves to be fired.
 
2011-11-04 08:41:48 PM
They have yet to make any profit.
 
2011-11-04 08:42:44 PM
BalugaJoe: They have yet to make any profit.

Step 1: Make shiatty website and market the shiat out of it.
Step 2: ???
Step 3: IPO time! (Profit!)
 
2011-11-04 09:53:29 PM
Funk Brothers: Lets wait six months to a year whether or not turning down a deal from Google for $6 billion was a good idea.

Well, its been about a year since their $5.3b offer, and the current market cap is about $19b. As of one year after Google's offer, the market seems to indicate that turning it down was a great idea.

/I don't understand it either. Groupon sucks. This stock screams SHORT to me but I said that this morning when it was at $20 per share so I would have gotten my ass handed to me.
 
2011-11-04 10:10:56 PM
Funk Brothers: Lets wait six months to a year whether or not turning down a deal from Google for $6 billion was a good idea.

Considering you can't throw a rock without hitting a Groupon competitor/imitator these days, I'm going to put that decision somewhere between "Invading Russia in the Winter" and "Hey let's change the flavor of Coke".
 
2011-11-04 10:14:32 PM
I'd start my own Groupon competitor, but the market is damn near saturated.
 
2011-11-04 10:17:43 PM
Jacobin: Wait. Is it the late 1990's again?

Pretty much. This, facebook, pandora, it's like .com 2, electric boogaloo
 
2011-11-04 10:20:58 PM
Why does groupon suck? I love being able to check out restaurants I never would have thought of trying because of the deals we have found. Maybe if you do not live in a major metro area it sucks, but in an area like Atlanta, it is awesome.
 
2011-11-04 10:22:10 PM
Groupon should offer a Groupon deal for their stock. Just for the recursiveness of it all.
 
2011-11-04 10:26:17 PM
cybrwzrd: Why does groupon suck? I love being able to check out restaurants I never would have thought of trying because of the deals we have found. Maybe if you do not live in a major metro area it sucks, but in an area like Atlanta, it is awesome.

Their business model doesn't allow for actual profit.
 
2011-11-04 10:49:03 PM
pudding7: Short it. And RIM too.

Can't...yet. As soon as you can, you better believe this stock will drop like a rock.
 
2011-11-04 11:14:06 PM
Debeo Summa Credo: /I don't understand it either. Groupon sucks. This stock screams SHORT to me but I said that this morning when it was at $20 per share so I would have gotten my ass handed to me.

No, what you do is buy a long-term put option for Groupon at $15. Put options are good if you want to short but you don't want to open yourself to the risk of a direct short. Since it's a brand new stock I doubt you'll see much along the lines of any good options or good option prices.

/I think I'm remembering the options correctly
//I might have put transposed
 
2011-11-04 11:29:45 PM
wildcardjack: Debeo Summa Credo: /I don't understand it either. Groupon sucks. This stock screams SHORT to me but I said that this morning when it was at $20 per share so I would have gotten my ass handed to me.

No, what you do is buy a long-term put option for Groupon at $15. Put options are good if you want to short but you don't want to open yourself to the risk of a direct short. Since it's a brand new stock I doubt you'll see much along the lines of any good options or good option prices.

/I think I'm remembering the options correctly
//I might have put transposed


You are correct. Both directionally and in saying that there probably isn't too much liquidity in their options.
 
2011-11-05 01:05:00 AM
Carth: Lots of people are going to lose money on this... and a small number of people are going to make millions.

The people who "are" going to make millions already have. The IPO is a troll for suckers looking to pay off the initial investors in the Ponzi scheme.
 
2011-11-05 01:22:29 AM
cybrwzrd: Why does groupon suck? I love being able to check out restaurants I never would have thought of trying because of the deals we have found. Maybe if you do not live in a major metro area it sucks, but in an area like Atlanta, it is awesome.

We're talking about investing in it, not consuming it. Two VERY VERY VERY different things.
 
2011-11-05 09:49:49 AM
Debeo Summa Credo: Funk Brothers: Lets wait six months to a year whether or not turning down a deal from Google for $6 billion was a good idea.

Well, its been about a year since their $5.3b offer, and the current market cap is about $19b. As of one year after Google's offer, the market seems to indicate that turning it down was a great idea.

/I don't understand it either. Groupon sucks. This stock screams SHORT to me but I said that this morning when it was at $20 per share so I would have gotten my ass handed to me.


It's not a true market cap. Because of the lockout period almost none of the shares can be traded. As a result, the small number that can are priced much higher due to an artificial, and temporary, scarcity. If it can hold the market cap after people with shares and options can sell them, it will have been a great move. But there is no guarantee that will be the case.
 
2011-11-05 10:30:51 AM
Goimir: Jacobin: Wait. Is it the late 1990's again?

Pretty much. This, facebook, pandora, it's like .com 2, electric boogaloo



It's nothing like the late 90s. Groupon has actual revenue and their stock only went up 50% on IPO. The late 90s looks at that and scoffs at the amateurs.
 
2011-11-05 10:38:00 AM
Christian Bale: Goimir: Jacobin: Wait. Is it the late 1990's again?

Pretty much. This, facebook, pandora, it's like .com 2, electric boogaloo


It's nothing like the late 90s. Groupon has actual revenue and their stock only went up 50% on IPO. The late 90s looks at that and scoffs at the amateurs.


They have some revenue, but not enough to cover expenses. They have a "product", but they don't have a way to sell it without bleeding money all over the place. Right now everything they sell costs them money.

/but they'll make it up on volume, right?
 
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