Groupon being worth $25 billion dollars, jumping $19 billion in four months, is ridiculous. Yes it is a great idea but I think if people start thinking they are worth $25 billion then they really will be. Sometimes I wonder if companies don't just throw out numbers to make themselves seem bigger. For example at my job we made an online wholesale printing company and made it look huge. People call all the time saying that they are small print shops in whatever location and I make them feel like they are ordering at a huge reliable corporation but really they are ordering from a printing company with three employees. We are still very reliable and satisfy people and soon hopefully one day will really be huge. So it is all about how you make yourself seem rather than how big you really are. Sure a small competitor can come and try to steal Groupon's business but they won't make much of an impact unless they are really serious. Take the example of how Facebook took over Myspace's market and threw them under the bus. This can happen to Groupon too if they don't keep innovating and coming up with new ideas and strategies. I guess we will have to wait and see!
http://e-marketingforsensiblefolk.blogspot.com/2011/03/groupongroupies.html
http://www.groupon.com/subscriptions/new?division_p=chicago
According to many articles and reports (http://dealbook.nytimes.com/2011/03/17/groupon-valuation-soars-as-possible-i-p-o-nears/?src=dlbksb) they are worth that much. It is rated as one of the highest market values of all time. Honestly, I think they got really lucky, but I would sell around this price. You won't get any higher than this and with technology advancing at today's rate, another company can come in and take that money.
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