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The loss is tiny and indicates profitability is in sight. GroupOn currently has a market cap of about 1.8B, which seems reasonable for a company that size, thou
by digeridoo 14y ago
The loss is tiny and indicates profitability is in sight. GroupOn currently has a market cap of about 1.8B, which seems reasonable for a company that size, though perhaps still a bit on the high side given how low their margins are likely to remain.
They went through their childhood years thinking they were going to take over the world, and not too long ago Google offered $6 billion for those dreams. No wonder investors still had some hopes that this was something more than an ordinary business of an ordinary scale. It's not.
If anyone would like to keep dreaming, AMZN was running over $300 million losses on a ~$600 million revenue every single quarter around the year 2000.
- Tloewald 14y agoAmazon is still smoke and mirrors. E.g. Current P/E is -- I am not making this up -- slightly under 3000. But, like Milo Minderbinder, they'll make it up on volume.
- suresk 14y agoThat P/E is somewhat misleading, because it is heavily skewed by the loss they reported in September (interestingly, a big chunk of that loss can be blamed on a huge writedown of their investment in LivingSocial). Prior to that, their P/E was in the 200-300 range - still probably kind of high, but much more reasonable than the figure you quote.
- outside1234 14y agothere's nothing reasonable about a 200 PE unless you think their earnings are going to rebound significantly. think about it - that means that it would take 200 years of earnings to be worth their market cap (not factoring in uncertainty and all that)
- Tloewald 14y ago300 is still 10x reasonable.