First, I will concede that I know very little about big time financial to doings such as the Groupon IPO.
So far, Groupon is staying on script. The stock priced at $20, raising about $700 million for the company and valuing it at $12.7 billion. That’s second only to Google (GOOG), which was valued at $23.1 billion upon its 2004 IPO. Groupon shares opened 40% higher, at $28, and hit $30 just a few minutes after trading started. They have drifted down from that, but are still well above their open price, at around $28
Huh?? Valued at 12.7 billion???
The Atlantic’s Derek Thompson says there are two possible factors motivating people buying Groupon today. Either they “really do believe that there is a business model at the bottom of the heap of Groupons, or else they think they’re smarter than the rest of the market and can spin off Groupon shares on a bunch of suckers in the weeks and months after the IPO.”
TA DA !!!
There it is: “…….spin off Groupon shares on a bunch of suckers in the weeks and months after the IPO”
As I said , I don’t know much, but I do know that except in rare occasions, the only people that make money (in the short term) are those on the inside and get into the IPO before the general public do.
Groupon will be interesting to keep an eye on.