Even though it seems like fewer and fewer people are cracking open a newspaper in the morning -- they're undoubtedly rubbing their eyes and then their iPhones to see how their FarmVille crops are faring instead -- there's no better way to take the temperature of the day's events. And if we were to gauge the week-old Groupon IPO's temperature, it would be running a 105-degree fever. Both because the group-buying site has been on fire, but also because many are insisting it's running a fatal fever.
Nothing sums up public sentiment quite like this Friday headline from the International Business Times: "Short-Seller Interest on Groupon Places Co. in Unenviable List of Most Overhyped, Dubious, Failing Publicly-Traded Firms."
Ouch. The IBT piece indicates that some traders are saying the company has "badly overpriced" its stock, and that it's primarily short-sellers taking advantage of the IPO. Which confirms something that's essentially common knowledge but not always articulated: Many expect Groupon to fail in the long run, but like Andrew Mason and many payday-chasing entrepreneurs, they expect a deluge of cash, and plan to get out before that happens.
Short-sellers buy stocks for a, yes, short amount of time before getting rid of it, which, if true, means that many of Groupon's investors aren't in it for the long haul. So where does that leave Groupon?
Well, right now, it leaves them at $24.74, as of press time. The stock has dipped and climbed, but has failed to reach or surpass the peak it opened at. Granted, the stock market is wildly unpredictable, but Groupon's largely been trending downward, and subsequently just treading water.
Read further analysis of the stock's trajectory over at the IBT.