4 ms·

Hilarious comparison. I love it. Isn't the whole point of an IPO to allow everyone participate, therefore letting the market decide? If you don't like Groupon

Hilarious comparison. I love it. Isn't the whole point of an IPO to allow everyone participate, therefore letting the market decide? If you don't like Groupon's numbers, don't buy the stock. Simple enough. I'm seeing a lot of: "Think of the poor regular investors when it pops!" sentiment. Are not these investors rational people acting on the same information we all have?

46Bit 15y ago
No. Of all the things you can describe the stock market as, rational is not one of them - and that's before you consider the amount of computer trading.
- jrockway 15y ago
  The computers are the most rational of all.
  - 46Bit 15y ago
    Not when they're programmed by people.
scrollbar 15y ago
This is a big moment that could potentially affect a lot of people. Some HNers may be considering investing- discussion of this opportunity will probably help with this decision making. Further there are many parties incented to pump hot stocks so they can profit from the fees and possibly from pump-and-dump: investment banks, current investors, soon-to-be investors, etc. I enjoy hearing both sides of the discussion here, and I do feel bad about people being misinformed and taken advantage of, even if it's ultimately their choice whether they buy in to the bullshit. The major question: is it bullshit, or not? Sounds like HN is undecided
- nzoschke 15y ago
  The discussion is great, don't get me wrong. Company IPOs, people buy or don't buy for tons of reasons, the company executes on their plan, and the market adjusts. Trying to label a company a ponzi scheme seems like little more than sensationalism to me. That said, I would never invest in Groupon, simply because I don't use the product ever.
  - wooster 15y ago
    That said, I would never invest in Groupon, simply because I don't use the product ever. Indeed. I tend not to invest in things I don't understand. I've never understood the appeal of most of the deals on Groupon and have never bought a Groupon. So, I'll be staying away from their stock, as well.
tvorryn 15y ago
... and if you really don't like Groupon's numbers you can short the stock. Although, I'm not sure how practical that is for the individual investor. You can take a look at the most recent tech IPOs and see what you think. (dang, yoku, dmd, qlik, smt, motr, logm, ftnt, swi)
- prodigal_erik 15y ago
  Even shorts who are eventually right still get blown up unless they correctly anticipate when the market will realize the price is too high. Put options aren't dangerous like this for the buyer (your loss is limited to the price of the option) but you have to wait for sellers to decide to start writing those, and I don't know much about holding or trading them.

46Bit 15y ago

No. Of all the things you can describe the stock market as, rational is not one of them - and that's before you consider the amount of computer trading.

jrockway 15y ago
The computers are the most rational of all.
- 46Bit 15y ago
  Not when they're programmed by people.

scrollbar 15y ago

This is a big moment that could potentially affect a lot of people. Some HNers may be considering investing- discussion of this opportunity will probably help with this decision making. Further there are many parties incented to pump hot stocks so they can profit from the fees and possibly from pump-and-dump: investment banks, current investors, soon-to-be investors, etc. I enjoy hearing both sides of the discussion here, and I do feel bad about people being misinformed and taken advantage of, even if it's ultimately their choice whether they buy in to the bullshit. The major question: is it bullshit, or not? Sounds like HN is undecided

nzoschke 15y ago
The discussion is great, don't get me wrong. Company IPOs, people buy or don't buy for tons of reasons, the company executes on their plan, and the market adjusts. Trying to label a company a ponzi scheme seems like little more than sensationalism to me. That said, I would never invest in Groupon, simply because I don't use the product ever.
- wooster 15y ago
  That said, I would never invest in Groupon, simply because I don't use the product ever. Indeed. I tend not to invest in things I don't understand. I've never understood the appeal of most of the deals on Groupon and have never bought a Groupon. So, I'll be staying away from their stock, as well.

tvorryn 15y ago

... and if you really don't like Groupon's numbers you can short the stock. Although, I'm not sure how practical that is for the individual investor. You can take a look at the most recent tech IPOs and see what you think. (dang, yoku, dmd, qlik, smt, motr, logm, ftnt, swi)

prodigal_erik 15y ago
Even shorts who are eventually right still get blown up unless they correctly anticipate when the market will realize the price is too high. Put options aren't dangerous like this for the buyer (your loss is limited to the price of the option) but you have to wait for sellers to decide to start writing those, and I don't know much about holding or trading them.