Investors bailing from Groupon; stock quickly dips below IPO price

New York, NY, United States (AHN) – Groupon, the Internet’s largest daily deal site that went public only three weeks ago, is now trading below its initial public offering (IPO) price. After a widely criticized IPO, pundits are now looking at the sell-off with little surprise.

The New York Times declared “deflated” Groupon shares “landed with a thud on Tuesday.”

The Wall Street Journal was less kind, calling the company’s IPO “a particular disaster” and declaring that “Groupon’s share price is in free-fall.”

Bloomberg called the sell-off a “plunge.”

“There was a lot of skepticism to begin with about Groupon’s model, its margins, its growth rate, but now you throw on a world economy that’s very unpredictable and shaky, and I think people are doing a flight to safety again,” Actarus Funds founder Stephan Paternot told Bloomberg.

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