Saturday, August 25

Go share GroupOn for a massive discount

Frank Sennett, "GroupOn the largest ever deal" author, offers you perspective on the daily company.

Shares of GroupOn are depressed, always Tuesday after the website latest result report showed that the strategy of the company is losing every day much momentum.

GroupOn was share price in recent times by 25 percent to $5.68, have hit an all-time low.

Investors are concerned about signs of slowness in the company daily offers advertising economy and international economic downturn such as GroupOn with Europe's economic problems concerned.

"Significantly faster than the company thought the daily business of the offers is slowed down," said Mark S. Mahaney, Internet analyst at Citigroup investment research, CNBC, adding that he did not expect to raise the stock price the basic operations of GroupOn.

"Until a stabilisation in our core business, the Commons will not go," he said.

GroupOn grew strongly, if it was a private company, by integrating local merchants with millions of everyday outreach on its website. The company went in early November and is one of a number of high-profile Internet companies-including names such as Zynga and Facebook, which have disappointed investors since their IPOs.

Since his debut in market late last year has GroupOn the share price fell 78 percent, as its offers daily business has faced increasing competition from Broncos and SocialBuy.

GroupOn tries now in new businesses such as consumer product sales and dealer services-to expand, which have much lower areas. The strategy puts GroupOn in direct competition with Internet heavyweights such as Amazon and eBay.

"they need to support the daily offers space, clearly before them these additional markets to go", said Frank Sennett, author of "Groupon the biggest deal ever," CNBC said.

The challenges that is faced with GroupOn in Europe that has to fight with slow economic growth, is a major concern, he added.

"[GroupOn] a good model in downtime, you want to be," said Sennett.

"If GroupOn does not do well, if people are looking for a bargain, that might be a pretty big problem," Sennett added.

Reuters contributed to this story.

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