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http://money.cnn.com/2012/02/08/technology/groupon_earnings/index.htm?source=cnn_bin

I don't think the Groupon business model is something that will work in the long run. It relies on companies offering extreme discounts to potential customers. However, companies, currently offering their services/products on Groupon, eventually will realize that discounting their offerings doesn't really attract LOYAL customers, but customers hunting for deals. Hence repeat business might be elusive. Besides, what business can offer 50-90 % discounts without loosing money (or at least not making any money) ?
Investors ignored Groupon's strong revenue and focused on the surprise earnings loss.
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