Dirk Knemeyer

Groupon’s future

Groupon’s future, June 27, 2011

A short comment contextualizing the prediction could go right here

Local deal site Groupon is raising eyebrows as they prepare to file for an IPO. The only thing increasing at a greater rate than their revenues are their losses, as the web wunderkind is betting big on their success and trying to take the market by storm. It’s not a bad strategy but it is a decidedly boom or bust strategy. Last year when commenting on Groupon we were impressed by their lack of competition, but unsure about their business model. Today the competition has certainly heated up, including some of the web leaders such as Facebook and Google getting involved. Well, Groupon is going for it, and good for them. But I’m far less certain, even as we near the eve of their big Wall Street coming out, that this is an investment to consider.