The principle problem with Groupon wasn't the competition or the stock being overvalued. Groupon's main problem is that their acquisition costs were so high th

The principle problem with Groupon wasn't the competition or the stock being overvalued. Groupon's main problem is that their acquisition costs were so high that they couldn't make money. Competition only became a drag on them when users began to get fatigued with daily deals. But even if users didn't get tired of daily deals, their business model simply wasn't on the path to profitability.