Why did Groupon get into a bad ending?

Absrtact: February 28 News, the United States Group purchase website Groupon released the fourth quarter of 2013 earnings, poor results led to an estimated 22%. Groupon's shares have shrunk by $1 billion trillion in value, despite a 7% rebound from the Friday plunge. For

February 28 News, the United States Group purchase website Groupon released the fourth quarter of 2013 earnings, poor results led to an estimated 22%. Groupon's shares have shrunk by $1 billion trillion in value, despite a 7% rebound from the Friday plunge.

Why did Groupon have such a bad ending after its analyst-recommended expansion of international business and the expansion of its mobile business?

In fact, the situation of Groupon and two other well-known companies, like Netflix and Facebook, have been subject to industry analysts ' resistance and constant surveillance. The shares of these companies have experienced a 200% surge in 12 months ago, and Groupon has grown to that point.

Previously, analysts said Groupon's business model could be described as a hoax, not bullish on its development, but Groupon has experienced decisive growth since 2012. Despite the pessimism surrounding Groupon's development, the quarterly results do not show that Groupon's growth has reached a bottleneck.

Earnings showed that, excluding one-off items, Groupon adjusted earnings per share to $0.04, with a fourth-quarter revenue of $768.4 million, both of which exceeded analysts ' expectations.

But Groupon's poor performance is also in line with the overall situation in online retailing, where Amazon, the online retailer, also experienced a decline in profits and sales last year. It is Groupon's fourth-quarter bad performance that has also overlooked ebay's dismal sales.

The industry seems to have two sets of standards, and analysts believe Groupon's operation is simply burning money, and its investment in China's red-hot media to build a Chinese version of Groupon is a testament to the cost of burning money. If Groupon doesn't invest 85.5 million of dollars in the heat media, Groupon is actually profitable in recent years.

Groupon's performance in North America is falling by 10% a year, and industry analysts are advising Groupon to expand its global business, but from the case of its investment in heat media, it seems that the industry is not buying it.

Regardless of how Groupon expands its business and changes direction to save its business, analysts in the industry are putting pressure on performance and direction. Enterprise management is to invest to develop into a long-term self-employed, this is bound to be in the initial stage of a large amount of investment, so the market should be in the development phase of the enterprise to take an objective attitude.