tag:blogger.com,1999:blog-8152901575140311047.post5620497557432649098..comments2024-03-28T08:49:51.975-04:00Comments on Musings on Markets: Groupon Gloom: Deal of the day or Death Spiral?Aswath Damodaranhttp://www.blogger.com/profile/12021594649672906878noreply@blogger.comBlogger21125tag:blogger.com,1999:blog-8152901575140311047.post-32647652313222688462014-02-07T06:59:20.521-05:002014-02-07T06:59:20.521-05:00I liked your article, I am inspired by your words ...I liked your article, I am inspired by your words you quote in your articles. Even I try my best to write the way you do in your writings.Dosage Formshttp://www.fountil.com/home.htmlnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-43534649125895493292014-02-06T04:47:29.403-05:002014-02-06T04:47:29.403-05:00I think most of the peoples are getting good knowl...I think most of the peoples are getting good knowledge from your blog, so it will easily to reach the correct market place.Best cancer hospital in Indiahttp://www.fortishealthcare.com/indianoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-84440322800440269732014-02-04T01:58:59.252-05:002014-02-04T01:58:59.252-05:00This is a quality content, marvelous story you had...This is a quality content, marvelous story you had presented. I also went through different posts those were also with full of authentic information provided by you. This topic was very sticky and touchy one.AC Dealer in Mumbaihttp://www.nirmalaircon.comnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-4259975844878252812013-11-21T22:37:33.625-05:002013-11-21T22:37:33.625-05:00surprisingly! It’s like you understand my mind! Yo...surprisingly! It’s like you understand my mind! You seem to know a lot about this, like you wrote the book in it or something. I think that you could do with some images to drive the message home a bit, but other than that, this is wonderful blog. A good read. I’ll certainly be back.<br /><a href="http://noriskinvestor.com/" rel="nofollow">neuce county texas tax liens</a><br /><a href="http://noriskinvestor.com/" rel="nofollow">tax forclousures auctions</a><br /><a href="http://noriskinvestor.com/" rel="nofollow">neuce county texas tax liens</a><br />Anonymoushttps://www.blogger.com/profile/13451532145728245922noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-37657315210556635192012-12-01T01:37:47.511-05:002012-12-01T01:37:47.511-05:00Clearly groupon is still way overvalued the prospe...Clearly groupon is still way overvalued the prospects for the company do not seem very great yet its amazing how investors can find a justification for the high valuation for a stock that they like such as groupon.Financial Directoryhttp://www.forestcotton.blogspot.comnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-58557832414916171112012-11-09T04:56:32.371-05:002012-11-09T04:56:32.371-05:00No wonder why you get so many feedbacks
sydney dea...No wonder why you get so many feedbacks<br /><a href="http://www.dealsextra.com.au/sydney.php" rel="nofollow">sydney deals</a>Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-5995720640257597512012-10-16T03:26:02.892-04:002012-10-16T03:26:02.892-04:00Fantastic job right here....Fantastic job right here....laurie Sanderzhttp://www.inquitech.com/noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-2806733598959444832012-09-19T09:54:41.635-04:002012-09-19T09:54:41.635-04:00Hey People,
"Groupon Gloom: Deal of the day o...Hey People,<br />"Groupon Gloom: Deal of the day or Death Spiral?"<br />The actual amazement found in this article makes me want to visit your site more often! Thanks.<br />bathroom mirrorshttp://bathroom-a.com/noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-61305702823060813242012-08-30T17:33:24.730-04:002012-08-30T17:33:24.730-04:00Prof, here is my post on the fundamentals. Will s...Prof, here is my post on the fundamentals. Will show up in the financials eventually :)<br />http://pandodaily.com/2012/08/28/what-ails-groupon-yahoo-and-facebook-demand-generation-advertising/Nat Kausikhttps://www.blogger.com/profile/05739084479039380466noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-38152285830944273712012-08-30T02:46:35.914-04:002012-08-30T02:46:35.914-04:00UK dealsYou may be right about the internet user b...<a href="http://www.dealpost.co.uk/" rel="nofollow">UK deals</a>You may be right about the internet user but all fundamentals are financial... the only reason.they can good business and good investment at any price UK dealshttp://www.dealpost.co.uk/noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-71734673518139087242012-08-27T16:17:24.432-04:002012-08-27T16:17:24.432-04:00That is true only for businesses that have a value...That is true only for businesses that have a value of zero. I am afraid that is an extreme position and applies to a very small subset of companies. Most businesses have some value. The question is what that value is... and whether you can buy it at a price lower than that value.Aswath Damodaranhttps://www.blogger.com/profile/12021594649672906878noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-7182343110143895842012-08-27T12:32:15.883-04:002012-08-27T12:32:15.883-04:00Prof, I disagree with your statement that "an...Prof, I disagree with your statement that "any stock can be a good investment at the right price." Businesses that are not sustainable are not good investments at any price, e.g, pets.com.Nat Kausikhttps://www.blogger.com/profile/05739084479039380466noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-32069764088442546002012-08-26T11:38:07.221-04:002012-08-26T11:38:07.221-04:00Pieter,
The problem with filters is that they can ...Pieter,<br />The problem with filters is that they can shut out good investments. Let me use Groupon as my analogy. By your measure, Groupon will never be a good investment. I do think that any stock can be a good investment at the right price. Thus, if I could buy Groupon at $1.50/share, I would.... So, screening is good but the nuts and bolts of valuation still matter.Aswath Damodaranhttps://www.blogger.com/profile/12021594649672906878noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-56168889066458280472012-08-26T11:13:41.652-04:002012-08-26T11:13:41.652-04:00The discussion about fundamentals is truly interes...The discussion about fundamentals is truly interesting. Some operational indicators or strategic assessments can be leading indicators that are hard to express in percentage points. <br /><br />Let's illustrate using Groupon. I have summarized Groupon as follows <b>"If giving 70% discounts is a bad idea for a merchant, then a business that helps executing that bad idea faster is probably a bad idea too".</b><br /><br />The facts seem to suggest there is merit in this assessment. But it is hard to translate into a spreadsheet, but rather, used as a filter before you start looking at the financials.Pieter Lekkerkerkhttp://www.linkedin.com/profile/view?id=299673&trk=tab_pronoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-63472493608537220882012-08-26T04:07:52.446-04:002012-08-26T04:07:52.446-04:00Prof, I am guessing you meant August 2008 to Octob...Prof, I am guessing you meant August 2008 to October 2008 to be the period when you revised the intrinsic values of firms that you tracked.. <br /><br />Great read and thanks for sharing your knowledgeSathya Ramanathannoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-76101094009075875682012-08-25T10:22:35.797-04:002012-08-25T10:22:35.797-04:00Brilliant post! Very insightful.Brilliant post! Very insightful.Anonymoushttps://www.blogger.com/profile/00943159303297353041noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-91766213253033609632012-08-25T06:36:50.900-04:002012-08-25T06:36:50.900-04:00Totally respect the methodological & thoroughn...Totally respect the methodological & thoroughness of Prof's work on the valuation.. it just shows I still have much to learn! ;-) <br /><br />If we bring our mind back however to definition of fundamental of business, which is the products/services and business model etc.. we could have foreseen that this could be a big waste of everyone's time & effort AND money.. <br /><br />as a nobody like me already said the business model was 'not broken' but "not sustainable" ever since it launched and first blogged about it back in 2010 and predicted them will not exist by 2015.. ( My response & prediction peHUB Depressing Thoughts About Groupon’s Model http://bit.ly/T8jyMf ), seems like I was wrong, their end might arrive sooner than that.. ;( <br /><br />there is a fundamental structural & supply problems of the capital market, which is the smoke screen & quality and timeliness of the business critical information.. we need a solution..gareth wonghttp://gw.cxovip.orgnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-35919675799162278152012-08-25T00:52:19.778-04:002012-08-25T00:52:19.778-04:00You are dead on about Groupon, which is a call cen...You are dead on about Groupon, which is a call center business disguised as a consumer internet company. There is no scale effect to their economics, they grow by hiring more people to dial for listings. Davidnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-60775516969872403622012-08-24T22:28:14.007-04:002012-08-24T22:28:14.007-04:00Thanks for responding.
It is true that all fundam...Thanks for responding.<br /><br />It is true that all fundamentals manifest themselves in the financials eventually. And that financials across multiple companies provides insight into sectors as a whole.<br /><br />But is also true that fundamentals get obscured in the financials when companies have huge amounts of private capital pumped into unsustainable business models and then dumped on the public markets.Nat Kausikhttps://www.blogger.com/profile/05739084479039380466noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-44790820810326663942012-08-24T22:15:50.142-04:002012-08-24T22:15:50.142-04:00You may be right about the internet user but all f...You may be right about the internet user but all fundamentals are financial... the only reason you care about them is because they affect revenues and margins and returns.. Aswath Damodaranhttps://www.blogger.com/profile/12021594649672906878noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-34734370596254543792012-08-24T22:11:29.947-04:002012-08-24T22:11:29.947-04:00Dear Prof: the common link in your overvaluing Gr...Dear Prof: the common link in your overvaluing Groupon and Facebook is that you are only looking at their financials and ignoring their fundamentals. <br /><br />In brief, the typical internet user is getting pounded by advertising of all sorts whether or not they are interested in such. This category of advertising is called "demand generation" and covers the ads delivered by Facebook, Groupon, Yahoo. The user is overwhelmed and is tuning out anything that is not relevant. Mobile devices with smaller screens drives the user to scream for even more relevance. As a result, there is a secular decline in all stocks related to "demand gen" advertising.<br /><br />Demand fulfillment on the other hand, where the user expresses explicit intent via entering a search term is growing. Companies such as Google, Amazon and Ebay fit this category. Their stocks are enjoying growth and will dominate in the coming years. Nat Kausikhttps://www.blogger.com/profile/05739084479039380466noreply@blogger.com