Some investors insist on learning the hard way. The latest example is the much-hyped public debut for daily deal company, Groupon (Nasdaq: GRPN)
After jumping an impressive 55.7% over its IPO price of $20 on November 4 – and making the company’s CEO, Andrew Mason, an instant paper billionaire – gravity kicked in.
The stock closed today at $15.24 per share, down 41.8% over the last five trading sessions and 51% from its all-time high.
Dare I say it, but…
We told you so on June 6: If You’re Hot for IPOs, Don’t Even Think About This One.
We told you so on June 8: Why Groupon’s IPO Won’t Save it From Google’s Clutches.
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We told you so on July 20: Three Red Flags to Consider Ahead of Groupon’s IPO.
Oh yeah, and we told you so as recently as November 2: Caveat Emptor: These Two Companies Won’t Last Another Five Years (Part 2).
We hope you listened.
Like my colleague, Larsen Kusick of The Growth Stock Wire, wrote today, “You can make money as an investor in growth stocks… but participating in popular IPOs is almost always a horrible way to go about it.”
I couldn’t agree more! So let Groupon be a reminder before you rush out to buy the next over-hyped Wall Street IPO.
If you suddenly think Groupon is a “Buy” now, though, we’d love to hear why. Make your bullish case by dropping us a line at firstname.lastname@example.org or by leaving a comment below.
Ahead of the tape,