Groupon, Inc. (NASDAQ:GRPN)

CAPS Rating: 1 out of 5

The leading Deal of The Day site with discounts on things to do, eat, see and buy. Currently providing subscribers in over 550 cities world wide with unique local discounts based on group buying and promising businesses a minimum number of customers.

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Player Avatar btmn (< 20) Submitted: 10/8/2012 6:48:59 PM : Underperform Start Price: $5.35 GRPN Score: +16.91

Groupon has a product whose innate value is questionable, a subscriber base experiencing fatigue, a cost structure that is unsustainable, a management team that doesn't instill confidence, and a brand that is becoming synonymous with over-hyped IPOs. All this baggage will be a drag on the company's ability to attract talent (the lifeblood of a tech company) and investors (who ultimately set the price of the company's stock). Even if the company manages to come up with a new strategy that has the potential for profits, it's doubtful that (1) they'll be capable of execution or (2) that the market will have enough patience to let them pivot in a meaningful way.

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