4 ms·

Although GRPN is undoubtedly a money-burning scam of a company that is doomed to inevitable failure, it should be noted that the broader market is currently suf

Although GRPN is undoubtedly a money-burning scam of a company that is doomed to inevitable failure, it should be noted that the broader market is currently suffering from sovereign debt contagion in Europe and the associated liquidity scrambles. It's not only GRPN.

RyanKearney 15y ago
Still no where near as much as "the broader market" http://goo.gl/aGG0V http://goo.gl/aGG0V (Used goo.gl to link to google.com/finance comparing GRPN to Dow Jones, S&P, and NASDAQ averages since the link broke.
suking 15y ago
It's outpacing the market drop by about 10X.
- scarface548 15y ago
  Not if you compare it with other tech stocks that are taking the beating too.
  - madh 15y ago
    Is Groupon really a tech company?
    - scarface548 15y ago
      May be not (then why are we discussing it on HN?). Not sure what you definition of a tech company is, I was comparing it to nextflix and the likes. Also i got this from WSJ, "33% of the 4th quarter US IPOs are trading below their offer prices." . So why is GRPN being singled out when all the stocks are taking heavy beating.
      - cloudwalking 15y ago
        Groupon is not a tech company, it's a marketing & sales company. But they're worth discussing because they started as a technology company, a scrappy startup with a fun story.
antr 15y ago
Sorry David but that makes no sense. Why aren't US companies with large exposure to Europe falling +10% too? Groupon's exposure to European countries going through the debt crisis is negligible. It's only Groupon
- brosephius 15y ago
  While there isn't enough trading history to say with confidence, I don't think it's unreasonable to say that GRPN has a pretty high beta to the broader market, so I would expect it to rise (or fall) several times the % of (most of) the rest of the market.
  - antr 15y ago
    Completely agree, the beta is well above 2 (my guess)
pbreit 15y ago
I downvoted the first clause (unwarranted and baseless), not the second clause.

RyanKearney 15y ago

Still no where near as much as "the broader market" http://goo.gl/aGG0V http://goo.gl/aGG0V (Used goo.gl to link to google.com/finance comparing GRPN to Dow Jones, S&P, and NASDAQ averages since the link broke.

suking 15y ago

It's outpacing the market drop by about 10X.

scarface548 15y ago
Not if you compare it with other tech stocks that are taking the beating too.
- madh 15y ago
  Is Groupon really a tech company?
  - scarface548 15y ago
    May be not (then why are we discussing it on HN?). Not sure what you definition of a tech company is, I was comparing it to nextflix and the likes. Also i got this from WSJ, "33% of the 4th quarter US IPOs are trading below their offer prices." . So why is GRPN being singled out when all the stocks are taking heavy beating.
    - cloudwalking 15y ago
      Groupon is not a tech company, it's a marketing & sales company. But they're worth discussing because they started as a technology company, a scrappy startup with a fun story.

antr 15y ago

Sorry David but that makes no sense. Why aren't US companies with large exposure to Europe falling +10% too? Groupon's exposure to European countries going through the debt crisis is negligible. It's only Groupon

brosephius 15y ago
While there isn't enough trading history to say with confidence, I don't think it's unreasonable to say that GRPN has a pretty high beta to the broader market, so I would expect it to rise (or fall) several times the % of (most of) the rest of the market.
- antr 15y ago
  Completely agree, the beta is well above 2 (my guess)

pbreit 15y ago

I downvoted the first clause (unwarranted and baseless), not the second clause.