Groupon Files $750 Million IPO

Tyler Durden's picture

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firstdivision's picture

What is the Groupon deal if I get 4 people to buy shares?

What does it all mean's picture

Well, just like the ipo, it will pop for the instutional guys and then settle lower.

Just like the deals they have.... all marked higher and the promised a 50% reduction... There is no one that would buy anything without a coupon for a repeat business.

This is definitely the beginning of a bubble.  Why don't we learn anything from Dot Com days.  There is no competitive advantage here, Rue La La, Living Social, Gilt...

It might take 2-3 months to sort out this party, but damn, it will make 2008 and 2001 looks like a party...  

Now is the time to figure out how to short/borrow/synthetically short these guys...  Even at 120% borrow rate for LNKD, shorting it was the right call.

Cursive's picture

@Mikla

LOL. Sums it up. I mean a fucking fly by night glorified green stamps operation.

andybev01's picture

"Green Stamps"...your age is showing.

 

But then again, so is mine.

What does it all mean's picture

They pulled the trigger the day after the biggest loss since Aug. 2010.  Just like a stop loss order, they don't want to miss the window when the S&P goes sub 1,000 or 800.. 

Seriously, at one point, YHOO is unbeatable... now, they allow you to login to their email using google accounts and/or Facebook... WTF...

UGrev's picture

wtf is "Groupon" ? 

never heard of it until today, ironically, on Linked In.. lol 

TruthInSunshine's picture

It's a lame ass, money losing (Tyler, I read GO lost 400 million last year) turd  of another 'hot' stock that is coming out just in time for a prelude to a mortal wound just like in 2000, when traders believed in Unicorns and Magic Pixie Dust with anything being pumped by the shysters.

Yes, sir, a bag full of LNKD, Group On, and some Chinese RINO and solar companies, and one will be set for life, living on the corner of Easy Street and Good Times Avenue, well into their retirement!

/sarc

Manthong's picture

Dipweeds should've taken the $6B buyout from Google.

What does it all mean's picture

That was pure hype from the IBers, never confirmed.  More like a 600M or 60M buy out.  Bear in mind, they were NEVER profitable.  Low barrier of entry.  And lack a repeatable business model.  

It's fine to buy a 50% coupon from them... but then again, I can do that from any one of its competitors... and I would never visit any of the businesses, without the subsidy.  (Just like the govt housing purchase tax breaks earlier this year...  only accelerate the demand curve forward, not generating new demand... )  Remember Kozmo?  Cyberrebate?  I can go on and on and on... 

 

We would never learn.

Manthong's picture

Yep, not much of a unique selling proposition.

In the hype though, they claimed high seven figure revenue. Also about a billion in venture capital in. I, for the life of me couldn't figure out how they could swing all that. Like their long term business prospects, all smoke I guess.

What does it all mean's picture

Their revenue goes out the window as fast as they come in.  Thus net negative.

The real question is:  Why are the investment banks allow to decide who to "go public"?  Isn't that the exact definiton of oligopoly?  The entire capital raising process is flawed, it is all a casino...  

The Cabal decides on who to make rich.  Google instead of Altavista, Groupon instead of Rue La La, Facebook instead of MySpace.  EVERYTHING is rigged.

Here is where I applaud Craiglist...

NotApplicable's picture

The IRS will take care of Craigslist, and those 'evil black markets.' Just you wait and see.

dark pools of soros's picture

how will they fight bitcoins??  will be interesting

magpie's picture

No, Facebook will be the top.
But by then, you'll gladly buy EU and China Sovbonds anyway.

qussl3's picture

facebook is everywhere, pervasive like google.

It demands huge attention from a good chunk of its user.

Groupon is a fucking clown party discount service.

Cleanclog's picture

Agree.  I would buy Facebook, depending on terms, but Groupon - no way!  Ditto for Ruelala and Jewelmint and the rest of these easy to copy yet quick to have margins knocked down quite quickly.  FB more difficult to recreate.  A huge community exists there with real driving power.  Tumblr not so much, but still better than Groupon, Linkedin, Ruelala etc.

Robot Traders Mom's picture

I'm actually getting kind of excited for the ponzi scheme that is our financial system, to end...

Although you can never tell when it will end, this all but confirms it.

shushup's picture

It's crap - wouldn't touch it. Not would I even look for their groupons.

Cleanclog's picture

In San Francisco Bay Area, the daily Groupon opportunities by email have been 1) Lame; 2) coached companies to run their prices up for month preceeding the "featured" 1/2 off or whatever Groupon promotion; 3) needs better partners - targeted Twitter, other social media that really knows where person is and then offers "deals" right in front of them.

My two cents.  Still, the fools will pile on and soar the deal before it gets pricked and drops.

chet's picture

Google is already shopping it's coupon service around.

Low barrier to entry for these internet companies.  You have to race like hell to be the first and biggest and hope to get established.  Worked for some like Amazon.  Failed for others like MySpace and AltaVista and countless others no one even remembers.

Mikebrah's picture

Lets be fair here....Google and Facebook respectively killed Altavista and MySpace.  While I wouldn't touch the GRPN stock, or even Facebook if/when it IPOs there is no denying that Google is/was a far, far superior search engine than Altavista.  That is why it got so popular in the first place, remember?

 

Same with Facebook.  It originated with college kids and was initially exclusively for that demographic.  This created a huge, legitimate network that created enough self-sustaining momentum and kept it on the legitimate track.  MySpace was open to any ass-clown with a computer and it rapidly turned into a sketchy, pedophile hotspot. 

 

Again, I'm not debating the stock valuations of any of the abovementioned companies but to suggest it was all a total fluke is inaccurate.  Google was amazingly simple and intuitive.  Facebook, same thing plus it felt "safe" to its users (although it most likely isn't).  These were deliberate marketing ploys.  Google still looks the same as it did 10 years ago.  It's the most simple, yet highly functional search out there. 

 

Just my $.02

chet's picture

I don't think it was a fluke.  But I think that both AltaVista and MySpace show how internet companies are always vulnerable to someone coming along and doing it better.

It could happen to Google or Facebook too.   Though Google has so much money and market share now that they set a high bar to overcome.

But Facebook may be just as vulnerable as MySpace.  There could be a guy named Zark Muckerberg writing code in a dorm room right now.  That's why they shouldn't have these ridiculous valuations.

Dingleberry Jones's picture

Cleanclog, what is the source image for your icon? It's fantastic.

Cursive's picture

And who is that? Chin is reminescent of Cybil Sheppard.

Cleanclog's picture

You are all too flattering.  Photographer is a friend.

Cursive's picture

Bet that's an interesting portfolio. :)

Dingleberry Jones's picture

Wait, are you saying that it's you? Regardless, it's a ridiculously impressive picture.

longorshort's picture

You really are a stupid fucktard. Folks read this as work and your not just showing cleavage there. We have enough unemployed people in the economy and do not need pictures of your fat ass adding to it.

longorshort's picture

You know dumbfuck, take some of your coupon money and buy some clothes for your profile. Does anyone look at this shit here WTF.

sabra1's picture

buy, and then short immediatly!

TheTmfreak's picture

Don't want to be the 122 dollar LNKD guy.

chet's picture

Hey, there's a whole new generation of traders on Wall Street and off that don't even remember 1999.

dark pools of soros's picture

exactly.  load up the truck with some Z and P coming later this year!!!   One letter NAZ stocks are all the rage!!!

buzzsaw99's picture

With a growth rate like that you gotta be a buyer bitchez!

XenoFrog's picture

Buy! buy! buy! *frothing at the mouth*

TooBearish's picture

TY- Is this gunna be priced tonite???  thx

lizzy36's picture

SHOW ME THE MONEY before QE2 ends....quickly.

Bam_Man's picture

Yup.

This might be the last chance to fleece the retail crowd for quite a while.

chet's picture

Just like the dotcom days.  Build up just enough of a something to take it public.  The founders become very rich, don't give a crud if the company is still around in two years.  The IPO is the target, not a sustainable company.

I agree that time is very short for this round of nonsense.

rumblefish's picture

another wtf stock.

go figure....LKND is up and silver is down.

RobotTrader's picture

"Social Media" is the next bubble to be blown by Wall St. to create yet another frenzy.

Silver bubble already popped, it might re-emerge later this year.

rumblefish's picture

i don't believe sound money is in a bubble mr.robot.

I do believe market dillusion is beyond bubbles.

Bay of Pigs's picture

Once a bubble is popped, it doesn't "re-emerge", whatever the hell that's supposed to mean.

Silver and gold are the opposite of a bubble Robot Fader.

dark pools of soros's picture

Robot blows bubbles outta his rear unit

JW n FL's picture

I am gonna buy it...

 

and hold it....

 

and name it george...

 

and Love it...

 

and pet it...

 

and keep it forever....

 

buy early and get the fuck out! and then buy back in after the fall.. as coupons? may have a following in the near future that is even stronger that it has now!