Now that Groupon has gone public, many are wondering what will happen next to the online daily deals seller.
While some are optimistic that the company will use the $700 million it raised in its offering to maintain a “dominant position even as deep-pocketed rivals ramp up their deals businesses,” others are doubtful the company can prove that its business is sustainable.
The jump in Groupon’s shares on the company’s first day of trading was a warning sign for many. Alexandra Petri of the Washington Post wrote: “It’s a bubble, all right.”
Over at the Daily Beast, Dan Lyons urged readers to “really, seriously, please do not buy this stock”. He added that “behind the scenes this company is a mess, and the stock carries loads of hidden risks”.
Wired’s Tim Carmody wrote that Groupon’s business model is “powerful but limited”. Elsewhere, Dan Mitchell of CNN questioned why Groupon’s stock “popped” and addressed the significant challenges Groupon will face.
Still, not everyone around the web was as skeptical about the compan’s future. Forbes’ Panos Mourdoukoutas pointed out that Groupon does have one important advantage: “The power of WOM and Buzz that it creates among customers for new products and services.”
As the Atlantic Wire’s Rebecca Greenfield put it: “No matter how much Groupon inevitably falls from this moment of fun, for now, the daily deals site should celebrate: For the first time in months it’s not falling short of expectations.”
