An excerpt from the book Groupon's Biggest Deal Ever by Frank Sennett published by WTTW in 2012 suggests there were three reasons behind the failure of this deal: Less than two years since its inception, in 2010, Alphabet Inc ( GOOG, GOOGL) ("Google") offered to buy Groupon for a staggering $5.75 billion, a deal that did not go through. Groupon, when it first emerged more than a decade ago, was an instant success. Groupon - Stuck between a rock and a hard place With Groupon stock price halved since then, the time is right to re-evaluate the prospects for this once-popular Internet company to determine whether GRPN is irrationally valued in the market today. In other words, I thought Groupon was cheaply valued for a reason. Still, I was forced to wait on the sidelines as I could not identify any catalysts that could drive the stock price higher in the foreseeable future. ( NASDAQ: GRPN ) published nearly a year ago, I claimed that Groupon was undervalued. More often than not, companies are cheaply valued for a reason, but every now and again, we come across companies that are irrationally valued in the market. If investing in stocks was as easy as identifying cheaply valued companies, I bet it would be tough to lose money in the market.
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