What once seemed like a sure good bet now has investors a little nervous; yes Groupon has Wall Street on edge. It was just in the past couple of years this start up company had the business world a buzz with such huge growth and potential.
Fast forward to 2012 and wow what a difference. With some bad press and not so pleased customers venting their frustrations about the company it has left them scrambling to do damage control. Also take in mind CEO Andrew Masons almost juvenile attitude on a couple conference calls with high stake investors and the board didn’t help (he made reference to taking clients out to see “Pole Dancers”).
Then on February 8TH, 2012 their 4th quarter results were far below investors expectations, Company CFO Jason Child almost down played the results and commented “We remain confident in the fundamentals of our business”. Not exactly the kind of answer to win over any skepticism amongst the big players on Wall Street.
With the attention span of such investors not being long or forgiving Groupon truly has their work cut out for them. In the remaining quarters of 2012 they better hope to see both the public and stockholders gain back some of the confidence they had in the earlier days to become a key player once again.