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Groupon, Inc. Message Board

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  • mymymyword mymymyword May 13, 2012 8:19 AM Flag

    popular to bash this BUT

    Analysts who claim Groupon is headed to profitability with no debt and plenty of cash on hand are either ignorant, corrupt, or mesmerized believers of the hype.

    Where is Groupon going to find profit when it had never had any? If it cuts its huge marketing bill, then sales drop. If it raises its cut of the action from merchants or customers, then competitors will take them away.

    Since Groupon never made a profit and the vast majority of the investor money it took in has gone to pay cash to original investors, how can Groupon have any cash on hand? Where is it?

    Are the analysts talking about the cash owed to merchants that Groupon keeps for 60 days? That should be logged as accounts payable. Not cash.

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