Groupon, Inc. (NASDAQ:GRPN)

"Growth company" that's projected to grow pretty darn slowly. This is the flavor of the week from a couple of years ago as far as I'm concerned. It's just not very exciting even in the best case scenario.

Groupon has been a disaster for two or three years now, but I still think there's a market out there for their deals, and I think they'll make money over the long haul. Might see $7 - $8 this year.

It's not gonna be THE high flyer as originally anticipated, but it is not worthless. There is a market for online discount shoppers, and Groupon, after all, is the market leader.

Not quite the demand for their products as was expected, try before you buy model only works if you buy.

Just a matter of time and this stock is broke. Business model without future.

Daily deals can be taken care of locally - soo much competition...

Groupon Goods... again where's the moat? Amazon has a lot of email addresses too...

Who, in good conscience, can put a $4.2 Billion dollar valuation on Groupon's email list?

Still the best of the mouse traps. Strong support around 5.

I've been a perma-bear on this one forever and thought I had already red-thumbed it but I hadn't. I red-thumbed it again on today's Investor Beat. No competitive advantages, no brand loyalty. Pass.

Bottomed Out. Can only go up from here. Multiple hedge funds buying into this.

The business model has a shallow moat and does not create a steady stream of repeat customers.

There is no way this company is worth 3.3 billion.

New president needs to write off all the mistakes of previous one.

Who cares about this business?

Plenty of room for this horrible company to get smaller. Coming soon, I predict "cost cutting," followed by a drop in revenue growth which was delivered by nothing more than a huge ramp in sales expenditures.

The biggest problem for Groupon is that many retailers are now starting to realize that Groupon customers are TERRIBLE customers. First of all, Groupon customers do NOT exhibit loyalty. These customers go to the businesses only for the discounts and they generally do not return. If we were to only stop at that point, it would prove that retailers are not getting a decent ROI, however, it gets worse. Next, Groupon customers are notoriously hard to please (which is pathetic considering they're already getting huge discounts). Groupon customers tend to love Yelp! and they LOVE to complain about the service that they received while using their Groupons. There is a tendency for retailers to have lower Yelp! scores after a Groupon promotion. Thus, Groupon is failing to provide an ROI incentive to the retailers (who are their most important partners).

In addition, Groupon now faces HUNDREDS of online competition and their market share has been steadily chipped away as other companies manage to give even better discounts and take even less gross profit off the top. The worst part about this is that Groupon already cannot pay its bills on the amount that it already takes to begin with. Thus, price competition is hurting Groupon.

In my opinion, the only way that Groupon is going to survive in this world is by doubling down on their Groupon Goods side and essentially slashing their Groupon coupons side. The coupons side just is not returning the necessary operating margins. On the other hand, the Goods side is growing into one of the largest online sites for e-commerce. IF Groupon manages to not mess this up, it could be a solid area for Groupon.

Tech Bubble 2.0

People are now hooked on Groupon and Living Social due to the economy. People have turned to them to save money and will spend even more with them when the economy turns.

Unsustainable business model

Groupon has a business model that has a very low barrier of entry and exit. Customer acquisition is getting on the high side and profit margins aren't impressive. It is easy for any of the giants to duplicate its business model and cause a great negative impact on it.