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Group Selling In Groupon After Hours

Tyler Durden's picture




 

At last check, one of the final remnants of the second coming of the dot com bubble was trading down 15% after hours following its Q2 earnings report which while beating on the bottom line at $0.08/share (including a one time $0.04 gain) on expectations of $0.03, missed the top line forecast of $575 MM, instead reporting $568.3 MM in revenues. Also spooking the market is the company's Q3 revenue forecast of $580MM - $620MM vs estimates of $607.4 MM. Company also adds that "income from operations for the third quarter 2012 is expected to be between $15 million and $35 million, compared with a loss from operations of $0.2 million in the third quarter 2011." Considering the market cap is just shy of $5 billion one may be excused to ask just how the company will grow its net income to anything remotely resembling a rational valuation, even when taking that company's $1.2 billion cash, all of its as a result of fundraising. Finally, what would a GRPN release be without the now traditional recasting, adjusting, and otherwise proformaing of some historical core line times. Sure enough: "The second quarter 2012 marked the first time that direct revenue was material to the Company’s consolidated performance. As a result, beginning in the second quarter 2012, third party and other and direct revenue are presented separately. Third party revenue is related to the sales for which the company acts as an agent for the merchant. This revenue is recorded on a net basis. Direct revenue is related to the sale of products for which the Company is the merchant of record. These revenues are accounted for on a gross basis, with the cost of inventory recorded in cost of revenue." Uh... Ok. Have fun with that.

Elsewhere, the Groupon Groupon is in need of a new Groupon.

 

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Mon, 08/13/2012 - 16:17 | 2701825 fightthepower
fightthepower's picture

Fuck you Bernanke!

Mon, 08/13/2012 - 16:20 | 2701842 Pladizow
Pladizow's picture

Groupoff!

Mon, 08/13/2012 - 17:53 | 2702137 AldousHuxley
AldousHuxley's picture

WaxOn

Mon, 08/13/2012 - 16:27 | 2701862 Silver Bug
Silver Bug's picture

Groupon is a massive scam. All you have to do is take one look at their balance sheets. They are a mess.

 

http://jimrickards.blogspot.ca/

Mon, 08/13/2012 - 17:04 | 2701989 GERxit
GERxit's picture

RIGHT! Used their "service" twice. It's ONE BIG SCAM! Hands off! Groupoff!

Mon, 08/13/2012 - 19:00 | 2702316 Unbezahlbar
Unbezahlbar's picture

Muppets get smacked down again. It will be fun to see who the insiders were who sold last week before this 20% Nosedive.

Mon, 08/13/2012 - 16:51 | 2701950 extendedorder
extendedorder's picture

grope-mom

Mon, 08/13/2012 - 19:45 | 2702430 SolarQuench
SolarQuench's picture

<!-- @page { size: 21.59cm 27.94cm; margin: 2cm } P { margin-bottom: 0.21cm } -->

Pls be a little more original next time , mate...I'm getting bit bored with this: f-this and f-that ineloquent stuff

Mon, 08/13/2012 - 16:17 | 2701826 Id fight Gandhi
Id fight Gandhi's picture

Groupon go down? That unpossible.

Mon, 08/13/2012 - 17:11 | 2702019 Robot Traders Mom
Robot Traders Mom's picture

That's what my kid said.

 

 

Mon, 08/13/2012 - 16:19 | 2701832 RacerX
RacerX's picture

so when does that stupid cat get the axe?

Mon, 08/13/2012 - 16:20 | 2701838 Aziz
Aziz's picture

Last August I wrote:

"Groupon’s business model is that of a very big, very greedy middleman — and a very, very big overhead to small businesses who look to recruit new customers. Do middlemen create value? No — they parasitise both the consumer and the producer.

What is clear is that growth will eventually hit a huge, impenetrable wall. Groupon’s core business is a house of cards."

Pretty happy with my analysis.

Mon, 08/13/2012 - 16:27 | 2701861 Dr Benway
Dr Benway's picture

middlemen CAN create value in a variety of ways, although often they don't

Mon, 08/13/2012 - 18:04 | 2702166 Aziz
Aziz's picture

No, at the very best middlemen are a necessary evil — they don't add value, but they are a better way of allocating resources than the Soviet central planning model where the parasites are bigger and hungrier.

In Grouponzi's case, however, the parasitism is not even a necessary evil, as businesses find that a huge Groupon-driven sales spike is no compensation for taking a 75% haircut on sales.

Mon, 08/13/2012 - 18:13 | 2702180 Benisprintingqu...
Benisprintingquintillionsbehindourbacks's picture

You seem to have the Mental Capacity of a 13 year old. Sometimes I'm tempted to explain things to you, but then I think better of it and just laugh at you instead.  

Mon, 08/13/2012 - 18:46 | 2702272 Aziz
Aziz's picture

Useless troll. Go ahead, "explain things" to me. You won't, because you're a useless troll.

Mon, 08/13/2012 - 19:50 | 2702443 SolarQuench
SolarQuench's picture

Eveyone here is a rough fucker me not a inch -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mon, 08/13/2012 - 23:55 | 2702986 Dr Benway
Dr Benway's picture

I do not agree with you.

 

Sometimes I want to buy stuff at a place or time or at a quantity that is not suitable directly from the manufacturer of that good.

 

The middleman purveyor of said good is providing a service to me and is adding value.

Mon, 08/13/2012 - 16:32 | 2701886 NotApplicable
NotApplicable's picture

I think you've went too far in claiming that middlemen create no value. Would you prefer living in a world where ALL purchases were direct from the manufacturer?

Groupon is a parasite, but that's from the con-game of running a loan-sharking business under the guise of advertising. Real middlemen, OTOH, take a material risk in order to provide a market for goods/services that they believe are actually underserved.

IDNJY

Mon, 08/13/2012 - 17:51 | 2702131 AldousHuxley
AldousHuxley's picture

middle men provides mostly marketing, snake oil sales people, and shitty customer service probably by non-American.

 

these days inventory risk is nill as they get to send inventory back to manufacturer.

 

good products need not much.

In fact, good products and services, customers have to compete to get them.

 

 

 

 

Mon, 08/13/2012 - 17:07 | 2702002 GERxit
GERxit's picture

Just like banks ... "big, fat, GREEDY middlemen".

Difference is: banks can afford to have shitty business model as they get bailed out when they fail!  

:-(

Mon, 08/13/2012 - 20:02 | 2702466 SolarQuench
SolarQuench's picture

We are going to have to deal with these fuckers in the future in the next 5 years... let's destroy their magin base...help me pls!!!!! I need everyone with a sensibility....

Mon, 08/13/2012 - 16:21 | 2701840 101 years and c...
101 years and counting's picture

no one cares anymore.

Mon, 08/13/2012 - 16:21 | 2701844 buzzsaw99
buzzsaw99's picture

are you ready to get your grpn? [/napoleon dynamite]

pardon me, but would you have any grey grpn? [tv commercial]

http://www.youtube.com/watch?v=NmannAYiwh0

i will have the grpn sandwich [overheard at a restaurant]

Tue, 08/14/2012 - 07:18 | 2703223 StychoKiller
StychoKiller's picture

Inquiring mindz wanna know:  Do you get a better deal by whipping out yer Uzi?

Mon, 08/13/2012 - 16:22 | 2701848 slaughterer
slaughterer's picture

Groupon = Poop-On

 

Mon, 08/13/2012 - 16:26 | 2701855 Bearish News
Bearish News's picture

A++ would short again.

Mon, 08/13/2012 - 16:26 | 2701857 Tim Knight from...
Tim Knight from Slope of Hope's picture

Oh, good God, these backgrounds you guys are using for charts. My poor eyes!

Mon, 08/13/2012 - 16:29 | 2701872 Cursive
Cursive's picture

There will be tons of momos buying in the morning and it'll be nicely off the lows by lunch.  Anyone who doesn't think we need a market clearing event to bring rationality back, that person is detached from reality.

Mon, 08/13/2012 - 16:38 | 2701909 Bay of Pigs
Bay of Pigs's picture

Countdown on share lockup release for Faceberg.

  • August 15th, 2012 (Thursday): 268 million shares, 10% of shares outstanding.
  • October 14th: 249 million shares, 9% of shares outstanding.
  • November 13th: 1.332 billion shares, 49% of shares outstanding.
  • December 13th: 124 million shares, 5% of shares outstanding.
  • May 17th, 2013: 47 million shares, 2% of shares outstanding.

Over the next 4 months, in other words, 2 billion Facebook shares will become eligible for sale—about 70% of Facebook's total shares outstanding.

Read more: http://www.businessinsider.com/facebook-lockup-release-2012-8#ixzz23Scj41El

 

Mon, 08/13/2012 - 16:50 | 2701940 spastic_colon
spastic_colon's picture

be on the lookout for the secondary filing.....this time to be led by BAC/ML/Countrywide

 

Almost forgot....fuck/shit/bernanke/chairsatan/dick/asshole/......lookin for extra green arrows

Mon, 08/13/2012 - 16:53 | 2701956 kaiserhoff
kaiserhoff's picture

Good Lord, you mean supply and demand apply to stocks????

Does Comrad Ben know about this????

 

Mon, 08/13/2012 - 21:15 | 2702664 TrainWreck1
TrainWreck1's picture

This will be one of the most delightful crashes in history.

The septic log known as FB will clog the system, as everyone jiggles the sell handle furiously, trying to unload their shares, only to watch in abject terror as the swirling scum rises in the bowl, inciting frantic calls to the plunger protection team.

 

Tue, 08/14/2012 - 07:19 | 2703226 StychoKiller
StychoKiller's picture

Plumbing problems are always a nightmare for me! LOL

Mon, 08/13/2012 - 16:46 | 2701922 H H Henry P P P...
H H Henry P P P Paulson's picture

Groupon now offering a 15% off groupon for its own stock GRPN... soon to be a 100% off groupon.

Mon, 08/13/2012 - 18:15 | 2702191 Unbezahlbar
Unbezahlbar's picture

They should have bought FB and Zynga instead.

Mon, 08/13/2012 - 18:24 | 2702213 Homey
Mon, 08/13/2012 - 19:54 | 2702454 SolarQuench
SolarQuench's picture

We , you and I ... can claim to us and God absolutley nothing

Mon, 08/13/2012 - 20:12 | 2702490 SolarQuench
SolarQuench's picture

Groupon = the future Entertainment facility... take a chance commom reason....

Mon, 08/13/2012 - 21:12 | 2702651 TrainWreck1
TrainWreck1's picture

Who buys this crap in the first place?

These outfits produce nothing, except windfalls for the insiders.

 

Mon, 08/13/2012 - 21:26 | 2702697 Ted Baker
Ted Baker's picture

Chapter 11 on the cards

Mon, 08/13/2012 - 23:13 | 2702938 Me_Myself_and_I
Me_Myself_and_I's picture

Constellation Brands is also worth $5 billion dollars.  And all they do is make money selling wine and Corona.

Hmm.  Let me take a vowel, Pat.

In a typical weekend Corona provides me with a far more valuable service than a bunch of arrogant know-it-alls spamming me with irrelevant offers on my email.

Tue, 08/14/2012 - 17:15 | 2705049 bbasnick
bbasnick's picture

Only a matter of time before LinkedIn joins the social sell-off! (Dislcosure: I am short LNKD)

- Brennan

www.mysocialpassport.com

Do NOT follow this link or you will be banned from the site!