Groupon, which at one point traded for more than $26 a share, has dropped to $15.24 and continues to drop in after-hours trading. That’s nearly 25% down from its $20 IPO strike price.
At $26, Groupon was worth around $18 billion. At $20, it was worth $12.7 billion. And at $15.24, it’s worth just $9.72 billion.
This is a freefall that’s feeding upon itself. It’s going to stop at some point… the question is at what price.
I never thought I’d say this: I’m starting to think that Groupon should have taken Google’s $6 billion acquisition offer. I’m going to wait for Groupon trading to normalize though before I call that one.