Hey guys, Groupon is having a 90%-off sale on their stock price!

I believe the Germans have a word for this feeling.

Groupon, the online deals site that was once the darling of both Wall Street and the Chicago tech scene, continues to stumble. On Monday morning, its stock price fell another five percent -- and that came after a 30 percent drop on Friday. The stock has now lost 90 percent of its value since its initial public offering last year.

Groupon is a great way to cannibalize your business by giving away your product for free without ever turning those customers into non-discounted repeat business. Couldn't happen to a nicer company that is not named "Yelp".

Previously, previously, previously.

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18 Responses:

  1. David M.A. says:

    Over/under Groupon remains a going concern? A major "pivot" to a completely different business model doesn't count.

    • Turtle Boughs says:

      That business model of which you speak, it is not the business model of Groupon. Their business model was a resounding success.

  2. I remember when I heard they turned down Google's offer of $6B for their shitty, easily-duplicated idea and thought "the people who run this company are the stupidest motherfuckers in the Universe."

    • Runner up: whoever in Google's M&A department thought that paying six billion dollars for Groupon was a good idea.

      (Although honestly, the #1 is a contest between Groupon and whoever at Google put the Motorola deal together.)

      • gryazi says:

        Moto is less a business to them than a strategic patent reserve that happens to have come with a company attached.

        • So everyone keeps saying. How's that plan working out for them so far?

          (Not at all the stupidest motherfucker in the universe: Sanjay Jha, who in fact gets my nomination for the most badass bluff artist in silicon valley history.)

          • gryazi says:

            Keepin' it weird, basically.

            But let's not forget that in mature coopetetive economies, that's mostly what matters. Going for the jugular is risky and possibly bad for business; a clear "win" just makes everyone hate you like Microsoft. As long as there's uncertainly about who has the most unrealized advantage in necrotic assets, the kids on the Wall Street schoolyard can argue about which company's going to grow faster and everyone maintains funding.

    • mathew says:

      Yeah, that was the moment at which I decided GroupOn was a get-rich-quick stock scam for the founders.

  3. mr. joe bangles says:

    "Groupon hopes that it might be able to turn things around with its Groupon Goods division, which is doing far better than the company’s primary deals division."

    wtf is "groupon goods"??? it sounds like the way kozmo.com made the only money it ever made when it sold its thousands of surplus messenger bags to thrift stores.

    • crowding says:

      At a glance, it appears to be Yet Another Woot.

    • Chris Adams says:

      At the time it was reported that Kozmo was profitable in their core markets - dense urban areas - but had expanded unsustainably because upper management & investors were obsessed with growth.

      I believe this means Groupon is actually an even worse deal than Kozmo.com

  4. Jon says:

    "I believe the Germans have a word for this feeling."

    Yeah: "Haha!"

  5. MZ MegaZone says:

    As a consumer I love Groupon - and LivingSocial, Tippr, DealADay, and all the rest. But I know they can't be great for the merchants. I often buy deals for places I go to already, just to save money. And I've purchased plenty of deals for one-time items, or just to try a new place to eat - but I've only returned as a non-discounted customer to a couple of them.

  6. nooj says:

    Sounds like exactly the phenomena of people only buying ordering ultra-high-end liquors when the bar is free.

  7. One of the many reasons I wish I had more disposable income is so I could have had enough to fund a margin account somewhere. I wanted to short the hell out of GRPN when it IPO'd. They have no competitive advantage other than first-mover and brand identity and that is absolutely not enough to compete against bigger players entering this market.