Why Groupon’s Recent Rally Doesn’t Matter
If your affections for Groupon were rekindled by the recent resurgence of its stock price, this post from Sneha Shah, editor-in-chief of Green World Investor, should knock you down a notch. According to Shah, “investors should sell into the rally as the company does not have a coherent business strategy and suffers low competitive barriers with slowing growth prospects.” In case you wanted to know more about why Groupon remains unappealing, Shah offers nine reasons:
1) weak business model
2) very low competitive barriers
3) unstable management
4) lack of a coherent business strategy
5) lack of margins in its fastest growing segment (Groupon Goods)
6) valuation is not cheap
7) growth has flattened out
8) no traction in international markets
9) accounting and legal problems
