As. I said, I'm not convinced this will work. I think you raise a good question. Their argument would be that, like Amazon or any number of other companies that

As. I said, I'm not convinced this will work. I think you raise a good question. Their argument would be that, like Amazon or any number of other companies that spend a ton of time at the beginning being unprofitable in competitive spheres, wthey are building up lots of forms of entrenchment that together constitute a barrier to entry. Things like brand awareness, relationships with large national merchants, mailing list, I'm sure they are working on systems to tailor deals to user's buying profile, "groupon now", travel deals, etc. Amazon's barrier is that they have so much available for purchase no one can compete with their breadth. If Groupon's list is the biggest, maybe they can leverage it to exclusive partnerships to the detriment of competitors. Again, I'm not sure this will work, but you're not calling them a scam. You just think they're overvalued, or that their competitive strategy is flawed. I would never argue that they are certain to succeed, I just think a lot of this Madoff nonsense is overblown.