Groupon's Market Debut Fizzles as IPO Gains Are Erased by Sinking Stock

by Knowlton Thomas

Well, that was fast.

After a fairly impressive market debut, Groupon's share price—following a bout of extreme shorting—has sunk to its opening price of $20.

This is unlike the other big tech IPO of the year, LinkedIn—whose debut was not only much more potent, but whose stock has held up much better. Yesterday, LinkedIn's lockup period ended, which meant early-stage investors could sell out. Its share price did drop as a result, but it is still well above its opening price, even with the burden of the down market. 

Meanwhile, Groupon is on the verge of losing value just a couple of weeks after its launch—can you imagine how investors would react on their lockup period's end? (May 2nd, if you're wondering).

I'm not going to say the word (bubble… oops), but Andrew Mason should have kept his life simple and stress-free by selling to Google for $6 billion last year. The daily deals model is not a sustainable multi-billion-dollar business.

Chicago, Illinois, United States

Launched in November 2008, Groupon features a daily deal on the best stuff to do, see, eat, and buy in a variety of cities across the United States. We have about 200 wonderful people working in our Chicago office (a handful of whom you can see to your right), along with a smattering of people in Groupon's other cities. Our company philosophy is pretty simple: we treat our customers the way we... more

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Knowlton Thomas

Knowlton Thomas

Knowlton is the managing editor of Techvibes and author of Tempest Bound. Based in Vancouver, Knowlton has been published in national publications and has also appeared on television and radio. Previously he was an editor for New Westminster weekly The Other Press and served on its board of directors. When not working, Knowlton enjoys hiking, tennis, and martial arts. more

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