Sell the Groupon Pop
May 14th 2012 3:51PM
Updated May 14th 2012 3:52PM
The following video is part of our "Motley Fool Conversations" series, in which senior technology analyst Eric Bleeker and chief technology officer Jeremy Phillips discuss topics across the investing world. Before Groupon's last earnings, Eric and Jeremy wrote an article urging investors to "Sell Groupon Before It's Too Late." The stock has declined more than 40% since that call. With Groupon seeing its shares soar today on seemingly no news, Eric and Jeremy revisit their bear case on the stock. Notably, they emphasize that Groupon's statements that it can drastically cut marketing and operating expenses should prove false over time. Groupon could see a rebound in the interim, especially as investors feed off the Facebook IPO later this week, but Eric and Jeremy continue telling investors to avoid the stock.
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At the time this article was published Eric Bleeker has no positions in the stocks mentioned above. Jeremy Phillips has no positions in the stocks mentioned above. The Motley Fool owns shares of LinkedIn. Motley Fool newsletter services recommend LinkedIn. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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