The word "effectively" in the title is a weasel word. Groupon is balance sheet insolvent by definition. Their liabilities are greater than assets. Groupon is

The word "effectively" in the title is a weasel word. Groupon is balance sheet insolvent by definition. Their liabilities are greater than assets. Groupon is cash flow solvent by definition. They are able to pay liabilities NET60. In Q2-Q4 2010, Groupon had $669mm with a net loss of $398mm. That is a ratio of about -0.59. In Q1 2011, Groupon had revenue of $644mm with a net loss of $102mm. That is a ratio of about -0.16. If you are long Groupon, then you are betting that -0.16 approaches zero and then turns positive. The moral of the story is: haters gonna hate.