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Three reasons to be wary of Groupon

Monday, August 13, 2012 - 00:44

Aug 13 - With Groupon set to release its latest earnings after the close, Reuters Breakingviews' Rob Cyran highlights what investors are most concerned about with the company's balance sheet.

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The group -- boss Andrew Mason gets another chance to convince the market that they're wrong about the daily deals stuck so far he hasn't done very well. The stock's down about 70% since its IPO the question is our daily deals losing their -- are becoming less poppy and needs to be. The signs are they seem to be Groupon made up for this period script and it's division called group on goods. However analysts are starting to question -- margins on this so ever going to be looking at whether the company's revenues slowing. And can a company make any profits from that and that feeds into a third point -- the company's cash has been very strong it's got quite a good balance sheet. Whoever if revenue growth starts to slow that cash could start to disappear quickly.

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Three reasons to be wary of Groupon

Monday, August 13, 2012 - 00:44