Groupon is about to release earnings. Ponder the Bear Case Scenario.
Groupon is in the advertising business. Despite the initial buzz Groupon has not dominated the industry as expected. Too many others can provide something similar.
Advertising sales is a tough tough business. Groupon did not have enough magic formula to rule the market.
Groupon needs to deliver a constant stream of discounts. Vendors may not feel compelled to offer discounts as they manipulate their marketing programs. Groupon will not have a sufficiently steady revenue stream.
George Gutowski writes from a caveat emptor perspective.