Although GRPN is undoubtedly a money-burning scam of a company that is doomed to inevitable failure, it should be noted that the broader market is currently suffering from sovereign debt contagion in Europe and the associated liquidity scrambles. It's not only GRPN.
Sorry David but that makes no sense. Why aren't US companies with large exposure to Europe falling +10% too? Groupon's exposure to European countries going through the debt crisis is negligible. It's only Groupon
While there isn't enough trading history to say with confidence, I don't think it's unreasonable to say that GRPN has a pretty high beta to the broader market, so I would expect it to rise (or fall) several times the % of (most of) the rest of the market.
May be not (then why are we discussing it on HN?). Not sure what you definition of a tech company is, I was comparing it to nextflix and the likes.
Also i got this from WSJ, "33% of the 4th quarter US IPOs are trading below their offer prices." . So why is GRPN being singled out when all the stocks are taking heavy beating.
Groupon is not a tech company, it's a marketing & sales company. But they're worth discussing because they started as a technology company, a scrappy startup with a fun story.
