I know I’m beating this horse to death at this point, but this is the important stuff happening right now, a market melting down while a handful of Icarus IPOs charge undaunted right into the sun.
Anyway, if you think I’m negative on Groupon‘s $30 billion self-awarded valuation, here’s what Forrester Research analyst Sucharita Mulpuru had to say…
“There is no rational math that could possibly get anyone to the valuation Groupon thinks it deserves…This IPO game isn’t about finding value, it’s about finding a greater fool who actually believes the valuation is true. Trust me, you will be the fool”
Now I don’t know what exactly a “Sucharita Mulpuru” is but it’s definitely making sense. Also this:
Groupon generated more than $700 million in revenue last year, but Mulpuru said $615 million of that came from acquisitions, heavy marketing and expansion into new markets.
I’d like to see them buy $615 million worth of revenue this year and then next year. LOL,