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Strategies & Market Trends : BAK - Investing

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From: Zoso_176/4/2012 1:21:43 PM
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Re: At what price would you buy GRPN?

I can't believe I am starting to look at FB and especially GRPN as these guys keep getting pounded. But given the right price, anything might be a good value right?

So GRPN market cap is now below $6 billion. In 2010, Google offered to buy them for $6 billion. So is it really worth less now?

The company is so new, it's hard to get a firm value on it. Revenue grew to $1.6 billion in 2011, which was 5 times 2010 revenue. 1st quarter 2012 revenue was $559 million.

On the plus side, I see GRPN becoming more and more mainstream and being adopted by people who are normally not internet savvy. The other day one of my relatives (in her 60's) was asking me what Groupon was about and how to use it.

On the negative side, there are absolutely no barriers to entry here. I've seen similar coupon offers being spun off by Amazon and Google lately. However I have to say that I have yet to find the same deals on those competitors.
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