When you finally turn a profit and investors simultaneously dump your stock to an all-time low, you have a problem. Groupon is the king of local couponing, but is its deal already as sweet as it can get?
The Basics
Groupon wasn’t the first local deal site, but it took the model to the masses. Buyers prepay for a discounted product or service, and when those purchases hit a threshold, Groupon splits the revenue with the merchant and the deal is on. Local businesses acquire customers, customers get a deal and Groupon gets paid.
Despite quarter after quarter of losses, Groupon passed on a rumored Google buyout and worked that model into a $12.7 billion IPO only 18 months into its existence.
But life since the IPO has been rough. Competitors such as
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