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If you dig, you can also find videos in which people were saying GOOG IPO at $20B was outrageous. Now GOOG is over 200B - 10 times as much!.
Grpn takes in a lot of money, but they haven’t made a profit. In article you reference in previous post. btw—good to see a positive article on grpn. I don’t think others are capitulating to grpn. They have same problem as grpn-how to make a profit. They will squeeze grpn profitable elements. There are no significant barriers to entry-- there is a barrier to profitability. Amzn, fb, goog and others with deep pockets will use any profitable areas of this business. What do you need to start this business: money, sales staff, internet and phones. Living social and others are doing it.
21 marh 2012 Pros
Fun if you are out of college and good experience to throw on the resume as a "first career job"
In terms of sales reps, It's really turned into a chop shop. The business model isn't new any more, the market is saturated with competition, etc. It used to be a fun, close-knit community, now employees are utterly expendable. Unless you're fresh out of college and looking to get your foot in the door, run
Grpn is a one trick pony, it moved from city to city, and now continent to continent. Lots of excitement in north America, then it wears off. Its international revenues were high last quarter. But this one trick pony will wear out its welcome continent by continent. Earnings growth will fade. We don’t know what access grpn has to consumers, because they have lumped numbers together. By doing so the natural assumption is grpns north american numbers are declining. They no longer report the details as they did in past. Grpn says they will have revenues of 510-550 million, I believe them. But will we see profits? Seems they are spending lots on acquisitions, and I’m interested to see north American revenues. I expect more “secret weapon” pr stuff, about how grpn technology is going to change our lives and we wont be able to live without grpn coupons.
Tanker - I will watch Q1 closely ..
I am a believer in GRPN model until the numbers prove me wrong ..
If this market is not lucrative - AMZN, GOOG, FB, etc, will not have entered the space!!. They all entered or tried out and the fact remains that none of them are even close to GRPN!!.
GRPN is the proven leader in the space thus far by miles ... I am betting that means the investors will reap the benefits despite many naysayers ..
I did not drop AMZN at $20 years ago because it did not produce profits for several years ... but I believed that AMZN was the leader and I have not been wrong ...
But currently I believe in Google and will watch Q1 report closely .. And I placed my bet with over 1000 April calls!!. If I am right I could make good chunk of money .. If I am wrong I will lose profits I made on Feb calls!!
So let us see if I make it big or break even on GRPN for the year!
Goog profitable, grpn unprofitable
Goog offered $10 and change to buy grpn, goog smart think they had valuation correct. Grpn thinks its worth $20
Lots of videos in past said buy goog, jim cramer was warned by sec to stop pushing goog so hard, but yes lots didn’t understand revenues and said don’t buy. Everyone understands grpns business model. Goog provides a service people find invaluable, grpn does not have same appeal. I can find only one video that kinda recommends grpn, most say sell.
Tanker - time will tell what happens to GRPN.
Everybody thought GOOG was a mere search engine (with search engines prior to that alta vista, inktomi, yahoo ... etc. were top flavors for sometime) and thought search is easily replaceable ... Till now MSFT is struggling with BING!.
Same thing will happen - GOOG will not be able to compete with lead GRPN has ...
Mason was right at not taking Google's 6B offer!!. Because GRPN is worth a lot more and even Google will realize it soon ...!!!
All companies AMZN, PCLN and even GOOG were not profitable in the initial years ... They turned profitable over the time ... If every company is profitable in initial years, then an industry called "Venture Capital" will not exist ...!!. Do you know why VC and Angel funding exists ...!!! Get a clue to that ...
BTW - GRPN will be profitable and its forward P/E is only 20.6 per http://finance.yahoo.com/q/ks?s=GRPN+Key+Statistics
20.6 P/E for a company with growth and moat like GRPN is very cheap -- very very cheap and that's why analysts are BULLISH ..
What will happen if GRPN beats the earnings and the forward P/E looks more like 15 or 10 .. Can you imagine in your head what the price of GRPN will be if it is given the same P/E as LNKD or FB etc..!!
Grpn’s ipo was 5 months ago. It was so bizarre and controversial as to leave the company exposed. It didn’t raise much capital. anticipate grpn to have legal problems
Goog did not have an ipo that created cash problems. The leaders of goog did not cash out such huge amounts of money during the ipo that the company had trouble paying its bills. Creating customer dissatisfaction. We are all capitalists here, and Mason and Lefkowsky founded grpn and should be rewarded. But it seems highly inappropriate to take so much money out of the company at ipo, when capital is needed for marketing and acquisitions. Mason say he needs to “sleep at night”, well most could sleep extremely well at night on 1/1000th that amount. Then to get so touchy about it and not understand how Its excessive, and it hurt the company. ¼ of that amount would be fine and keep the rest in stock, if as mason says grpn will be “wildly profitable” only wild profits have been for them so far. lots have written of the leadership issues within grpn. These reports don’t engender confidence.
Unlike grpn, goog deals with the media, advertising, personnel, tax, legal and accounting issues professionally. As boring as this investing stuff is, grpns history makes for kinda interesting reading
I don't know about you..
I read the article .. and I understand and side with Mason on this ..
People like David don't understand (because they perhaps never built a business) how a business is built ..
GRPN's defensibility is proven in the numbers ..
Show me one competitor that has at least 50% market share that of GRPN ..!! Show me now and I will run the other way ...
The numbers I see prove to me that GRPN is the leader by a wide margin .. GOOG, FB, AMZN, YELP, OPEN and all have tried and have failed or failing or no where any close to catching up GRPN ...!!
If the model is so replicable, can Mr. David answer my question why no company even has 50% market share of GRPN .. Common David .. You asked Mason questions and called him grumpy .. Answer my one question ...!!!. I am sure you can't ....!!!