Friday, November 4, 2011
On Friday, October 31, the company that started group discounts, Groupon, went public. The moment the company announced that it was going public, its stock price increased dramatically, showing just how much in demand this company is. According to analysts, this high increase in stock prices is common for companies who have gone public. Just to provide a little background information on the company, Groupon is a company who sends out emails to its subscribers about discounts, anything from spa treatments to vacation getaways. The company makes revenue by taking a portion of what people pay and handing the rest over to the merchant. Even though there have been other companies who have tried to do the same thing Groupon is doing, the company still manages to differentiate itself and outrun its competitors.
My View:
Groupon has been growing ever since its launch in 2008. The company has been getting more customers and its demand grows significantly ever year. I am not surprised many people have decided to invest in this company because it is a worthwhile company to invest in. If people see that a company has a steady record of continuous success, they are going to take that opportunity and invest their money in it. Groupon offers many good deals and it is fully sustainable. Advesrtising can cost a company thounsands or millions of dollars, but Groupon allows businesses to advertise through it by offering them extreme discounts. People see the benefits of this company and clearly Groupon must be doing something right if people keep flocking to its company and not to its rivals.
http://finance.yahoo.com/news/Groupon-shares-soars-in-apf-2236203133.html?x=0
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