Did Groupon Results Surprise You?

Groupon investors were expecting a better deal than the surprise loss the company delivered on Wednesday. Personally I was not surprised because I never believed in this business format and its growth. Groupon Inc., which went public in November, makes money by taking a cut from the online deals it offers on a variety of goods and services.

Groupon’s net loss totaled $42.7 million, or 8 cents per share, for the final three months of 2011. A year earlier, as a private company, it booked a larger loss of $378.6 million, or $1.08 per share.

I was pessimistic since day 1 group buying sites starting picking up and filling inboxes with offers that most of them were not honored (mainly in Europe, such problems Groupon had in France), and some of the websites had empty pages without any offer,

I wrote about Group Buying & Global Recession, I also wondered What Value Can Groupon Add To Groceries?

You can read Daily Deals by the Numbers and take a look at this player who arrived late and some simple calculation.

For retail enthusiasts, you can also read Retail Renaissance from TrendWatching.com.



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