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All the Groupon IPO really proves is that the bubble is back

Gigaom: After a wave of reports that Groupon would have to drop the price on its initial public offering or even cancel it altogether because of skepticism about the company and its business model, the pendulum of optimism swung back again by Friday and the shares listed at $20 — well above the range Groupon was originally planning — and jumped as high as $30 when they first opened. So what happened? Did Groupon’s business suddenly improve? No, it’s still as questionable as ever. What happened says a lot more about the current bubble-style investment climate and an overheated market than it does about the potential value of the group-buying company.

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