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Groupon is in a dramatic race against financial gravity. The insiders will be desperately struggling to keep the share price up until May when the lock up perio
by dia80 15y ago
Groupon is in a dramatic race against financial gravity. The insiders will be desperately struggling to keep the share price up until May when the lock up period ends and they can flee the burning theatre. To do that they need to produce one more quarter of results that can keep the fantasy of a company that will one day justify a $15 billion valuation alive.
The earnings miss (3 cent loss vs 2 cent profit est) shows they are already struggling to control things and might not manage it. The VCs that paid the founders to get a piece of IPO flipping action could well be sweating by now.