I love this Groupon headline!
Moatless, rudderless Groupon now worth $12.7 bln
What an apt description! And it leads right into my decision to red-thumb this stock (as soon as it's available for that).
My negative outlook on Groupon doesn't revolve around it's "fad" status, or around competitors offering similar virtual coupons. My negative outlook doesn't even come from deep due diligence and analysis of revenues, cost structures, or potential future dilution.
Nope. It's because my wife announced a few weeks ago that she was quitting the Groupon world. She had been quite enthusiastic about the service at first. We had a few successes in getting nice discounts on things we really wanted and made use of. But, as my wife puts it, then it started to become both a chore and a bore.
If my wife can so easily, and definitively decide to simply walk away from the service (not even going so far as to switch to a competing service like Amazon is now providing), then not only is there truly no moat at Groupon; there is barely any primary value to this type of service in general.