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Groupon IPO
It is 12:30PM, November 4, 2011 and the Wall Street Journal reports “Groupon Opens Up 40%” The current price gives Groupon a market cap of around $13 billion. However, the company is still hemorrhaging money. There are probably a few reasons why the stock is up – 1.) the size of the offering is a very small percentage of the company, 2.) there is plenty of hype, 3.) internet IPO’s usually get strong demand.
Now, what is important about this is to stick to the fundamentals. As I wrote before,
Nothing has changed since my last post, and given the current trajectory, I am sticking to my position. Time (and I suspect a very short time) will tell.
*This article is not financial advice, nor is intended to recommend the purchase or sale of any stock or investment. Please consult your financial advisor for investment guidance.
Alibaba IPO and Yahoo Valuation
Call me old, but am I the only one that remembers the Palm IPO? OK, so I was among the cattle desperately trying to get shares of Palm, back in the day – March 2000. Now, something with Alibaba smelled very similar to that Palm IPO…
March 2000:
- Palm IPO rises 150% by closing bell
- Palm closes opening day with a $53 billion market cap
- Main Palm shareholder 3com rises drastically as a result of Palm’s market cap
November 2007:
- Alibaba IPO rises 193% by closing bell
- Alibaba closes first day of trading with a $25.7 billion market cap
- Main Alibaba shareholder Yahoo! drops 4.6%???
OK, so Mr. Yang is in the hot seat, but is it so serious as to discount the more than $6 billion they just made off of the Alibaba IPO, plus a nearly $2 billion more in the drop of today?
Then again, investors could be discounting the huge dot-comish PE that Alibaba carries.
Oh, and for those of you wondering how Palm did ever since that monumental IPO… PALM Market Cap: $0.9 billion
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