So we all know about a little company called Groupon. They give great deals on fun things that we use daily. Groupon is a cool little website and honestly I did not think much of it when it first came into being a few years back. I still feel that I do not really know enough about this company to pay twenty dollars per share for it. Honestly, I would value the company at five dollars per share.
No one knows that much about this company yet. It has not proven its value. I would not compare these deals to the value of a search engine like Google. The price per share that Groupon is asking for its stock is rediculously inflated. One of the few other companies with a similar IPO was Google. Well, I understand taking a risk on Google. I mean Google is a household name. It is a noun and a verb all at the same time.
I do not understand the big deal with Groupon. Their business model is shabby at best. Any other company can step in and begin offering discounts. What is so original with Groupon? I guess they have a catchy name and they are known. They actually do a lot of advertising for a mysterious online venture like that.
Some people had their doubts about Facebook and Ebay. Well, I think Groupon carries an even bigger risk for the average investor. Not many people actually know how this company makes its money. I think we need more time to evaluate the full potential of this venture before we put our hard earned money into it. Let’s face it they are not going to give us a refund once they go bankrupt.
The economy is not great now. We should be careful not to throw our money into the garbage basket. Groupon is an interesting concept though. I think we should follow this company and possibly invest when the price is right. They have been around for a few years now and no one has managed to steal their business as of yet. That gives me hope that there is potential here. We need to learn to see through the hype and learn what is real.