Tuesday, October 25, 2011

Groupon Bubble

Funny how economics works, someone comes up with a great idea makes a lot of money, everyone copies that great idea, all of a sudden the original idea is no longer profitable. There are red flags all over groupon, a constantly shrinking IPO, old investors bailing as new ones come in, questionable accounting practices and big payouts of the executives. This does not sound like a company on firm financial footing. One line from this article in particular stuck out - "[Groupon is part of] an industry that is turning into the digital equivalent of junk mail."


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