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Bubble Babies

Bubble Babies

The Groupon Backlash Backlash

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Groupon has fallen hard since it was the “fastest-growing company in the world” with a valuation of $25 billion, thanks to revelations of accounting discrepancies, revenue numbers, payouts to early investors and a class action lawsuit by employees. Groupon already looks overvalued at its current $10 billion valuation, says Henry Blodget, who estimates a more appropriate valuation would be in the $7.5 billion range in a post titled, “I Wouldn’t Touch Groupon’s Stock At The IPO Price With A 50-Foot Pole.”

Bummerzone for Andrew Mason. But there may be some Groupon backlash backlash. “But just for the sake of symmetry, here’s a simple bull case for Groupon, and for how it could get its really high revenue growth back,” writes the highly-regarded Reuters finance blogger Felix Salmon this morning. Read More