Alison Buchanan is very right: it is remarkable that Groupon has stayed afloat. It’s only 2 weeks public and the stock has already dipped 15% in the first three days, has soared 6% in one day, only to dip 3% another day. Good and bad, Groupon is outperforming the markets.

Groupon’s volatility is just too much for me.

Source: Cartoon Stock

When Murray Carlson presented to us, markets closed 2% higher. We discussed just how incredible that was. It was all based on the financial security of an entire continent. Not a new tech business.

I disagree with Alison, because I can’t see Groupon succeeding under such volatility. Such highs and lows suggest that Groupon’s price is determined by speculators “just wanting to ride the newest wave of technology.” Its market performance isn’t driven by financial status and possibility.

Besides, what does Groupon really have that makes it secure? For starters, it’s got fake assets. But that’s all figured out now.

Instead, Groupon destroys businesses, and profits immensely. Once business realize they are being cheated – and that with so many other Groupon knock-offs, they could do better elsewhere – they will move away. And Groupon will suffer, stock price and company worth alike.

This is in response to Alison Buchanan’s post praising Groupon’s IPO.