NEW YORK, NY - JULY 19: A ticker shows stocks up on floor of the New York Stock Exchange after the closing bell on July 19, 2011 in New York City. The Dow finished up 202.26 points, the largest one-day gain this year, to close at 12,587.42. (Photo by Mario Tama/Getty Images)
Yes, you read that headline correctly. Though it sounds completely contradictory, or even downright impossible, it's true: Groupon's stock is still beneath its initial asking price ($18.98, currently), but a compilation of data from daily-deal aggregator Yipit reveals all of Groupon's enterprises "had double-digit growth in October."
Okay, so, if that's the case, and Groupon is being successful by some measures, then why the heck is the stock continuing to fall? There are a couple of theories circulating around, and Sunday's edition of the Motley Fool from The Spokesman-Review has a convenient article-basket filled with the prevailing ones:
"The founders appear to be cashing out: Of the last $130 million that was raised pre-IPO, $120 million went out the door to founders. We’d rather see these folks leaving most of their stake intact, aligning their interests with shareholders.
Its business doesn’t inspire great customer loyalty. If you’re a coupon seeker, you’re not likely to stick solely with Groupon and ignore other options.
Its accounting has raised eyebrows. The company restated its revenue recently, and has changed how it defines certain expenses.
Hot IPOs tend to cool off. Per Bloomberg Businessweek, 20 of the 25 “hottest” IPOs of 2010 and 2011 have fallen sharply."
Anyway, Groupon's IPO continues to be fascinating to watch unfold, and its brought back that feeling of the Old West that the dot-com era had when it first started. Who the heck knows where this is all headed? Nobody knows, but everyone seems to like to guess -- or at least act like they do know.
David Wolinsky is a freelance writer and a lifelong Chicagoan. In addition to currently serving as an interviewer-writer for Adult Swim, he's also a columnist for EGM. He was the Chicago city editor for The Onion A.V. Club where he provided in-depth daily coverage of this city's bustling arts/entertainment scene for half a decade. When not playing video games for work he's thinking of dashing out to Chicago Diner, Pizano's, or Yummy Yummy. His first career aspirations were to be a game-show host.