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DonRocks

$15 BILLION Market Cap for Groupon?

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So why don't we get off our collective high horses here - if you want to attack Groupon go ahead

FWIW, that's all I intended to do which is why it's in this thread. But you have to admit the mistake *is* funny.

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FWIW, that's all I intended to do which is why it's in this thread. But you have to admit the mistake *is* funny.

I agree - I did laugh at that.

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...You're going to compare a ground floor level sales job, taken by a kid probably right out of college - more than likely to simply get some experience on their resume since the job market is pretty competitive, to fracking? ...

Well, telemarketers *are* fracking annoying.

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On 11/12/2011 at 0:11 AM, DonRocks said:

And remember my post five years from now. :)

Serious question: How does thinking something is a bad idea make you a "hater?"

I'll say one thing for Groupon: Five years later, they still have a market cap of $2.5 billion - that is a *lot* of money. I don't follow Groupon anymore, so don't even know what they do, but I still don't see how what they were doing five years ago was anything different than the Entertainment books we used to buy in drug stores 30 years ago, getting evil scowls from restaurant workers when we pulled them out.

From: "RIP LivingSocial: The Fast Rise and Slow Demise of a Daily Deals Company" by Steven Overly on washingtonpost.com

“When you’re in the middle of a fad, you don’t always know you’re in the middle of a fad,” Bax said. “There were all kinds of haters out there with revisionist memories, but there was a two-year span where everything the haters wrote just didn’t happen.”

 

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"GrubHub, Groupon Shares Rise on Food Delivery Partnership" by Wallace Witkowski on marketwatch.com

GrubHub has a market cap of $4 billion, and Groupon has a market cap of $2.4 billion.

I may be wrong, but it seems to me that GrubHub's delivery fees have gone up this year - slowly enough so that people may not notice, but what used to be $2.99, seems like it's now $4.99. Again, this is just from eyeballing things, and not doing any type of methodical analysis.

Doordash fees have *definitely* increased since they added a service charge - I haven't used them since this happened. Considering that I tip drivers %20-or-so, I can live with a $2.99 supplement, but I refuse to pay $4.99.

My problem with all of these companies (as a hypothetical investor) is that there just doesn't seem to be much barrier to entry. Maybe I'm wrong, but do you *really* see GrubHub as being worth $4 billion ten years from now?

They kept their fees low, and got people "used to the idea" of their service, and now it seems to me like they're raising prices. 

Has anyone out there noticed anything similar, or am I imagining this?

I strongly suspect that people profiting the most from these business models will be long-gone in ten years. If taxi companies want to reclaim some of their lost business, they can start right here.

This was just released one hour ago:

"Yelp Is Selling Eat24 to GrubHub for $287.5 Million and the Stock [Yelp's Stock] Is Skyrocketing" by Matthew Lynley on techcrunch.com

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Groupon is evidently up for sale

Last year they turned a profit.  If you go to the earliest comments in this thread you will find one interesting post by a former commentator detailing his business experience in using Groupon/Living Social.   While we never did one for any of our businesses I was able to somewhat track the impact of the reach of their emails.  It was enormous from our little niche perspective.  Also go through threads here and there are numerous references to groupons.  People love deals.  

It is many years since they started.  We still get sales calls on occasion.   We still haven’t used one.  I’ll add this though the compelling element of their sales calls has improved.  

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14 minutes ago, DaveO said:

They should double the asking price, and make a 50%-off Groupon available.

Hopefully the profit isn't due to a change in accounting methods.

MicroStrategy.png <--- Revised income statements can be challenging for a company's stock price. 😲

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On 11/10/2011 at 3:04 PM, DonRocks said:

I cannot find one single shred of evidence, including my own perception of The Scene, that leads me to believe Groupon is anything but an awful long-term investment. I'd be delighted if they succeeded, but ...

Really? Really??

On 11/12/2011 at 12:11 AM, DonRocks said:

And remember my post five years from now. :)

On 11/28/2011 at 9:23 PM, DonRocks said:

Sixteen days later, the company is now valued at less than $10 billion. From where I sit ...

$10 BILLION for this business model?!

This is about the only case in IPO history where I trust myself more than I trust financial analysts. How can this company be worth ten billion dollars? Unless they have some sort of secret patent-trademark-voodoo thing going on, how can it be worth *one* billion dollars?

Rhyming couplet:

Fuckin' A

Send some my way

A billion dollars?!

You see those Entertainment Books sitting in CVS? That's Groupon. I mean, God love 'em, but ... NO!

The Washington, DC market has got to be 1% of the nation's internet economy. If someone wants to write me a check for $10 million, they can have this website (*), lox, stock, and bagel, and I'll send you a postcard from Barbados. Ashok? Michael?

(*) Not really, but you get the picture. WTF?!

Re-reading this post, I don't want people to get the impression that I'm cheerleading the company's demise - I'm not (if anything, a successful Groupon would spur donrockwell.com to get into the same type of thing, so I'd personally have everything to gain from their success - likewise Yelp). But I feel like I'm watching a train leave the station that's destined for a crash, and I'm taking a morbid fascination in it.

Market cap: $1.64 Billion

Screenshot 2018-12-24 at 23.06.05.png

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