Why Groupon Can't Survive
The following video is part of our "Motley Fool Conversations" series, in which consumer-goods editor and analyst Austin Smith and industrials editor and analyst Brendan Byrnes discuss topics around the investing world.
In today's edition, Austin and Brendan talk about the difficult environment Groupon operates in, and the likelihood it'll be able to survive. With such low barriers to entry, more competitors getting added, and other companies having deeper pockets with better data, Austin doesn't see a long-term future for the company. Even seemingly unrelated companies like banks are getting involved now. In his opinion, Groupon could go down as one of the most disappointing of the Web 2.0 IPOs.
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At the time this article was published Austin Smithowns shares of eBay.Brendan Byrneshas no positions in the stocks mentioned above. The Motley Fool owns shares of Amazon.com and Bank of America.Motley Fool newsletter services recommendAmazon.com and eBay. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.