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Articles like this are not good for any company, but especially for companies that has been scrutinized as much as Groupon for it’s unusual accounting meterics, because it raises the question is its business model flawed. My motivation for bring Groupon’s woes up is in the interest of bringing up a larger issue that circles the online business community. The dot com boom had every leader cramming for eyeballs not profitably, that was awry and we saw a bust happen because of it, now revenue has become the issues for them and that is where Groupon is struggling.
On this episode of TPN Finance, I analyze how measuring upon profitability is a great way to value a business and if profitability is a pickle for the online medium why would companies choose to solely run on that domain instead of storefront.
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