6 Weeks Post-IPO, Groupon Is Worth More Than $14 Billion

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Say whatever you want about Groupon -- mention the large sales of shares by insiders or the company's massive marketing costs or the dubious value proposition for merchants -- none of it matters all that much to investors. They seem to think that what the company's doing is worth something, quite a lot in fact. After six weeks on NASDAQ, Groupon still has a market cap of $14.64 billion. That's $8 billion more than Google offered for the company in late 2010 and almost 10 times as large AOL's market value.

I suppose it's pretty simple in the end: their customer base and revenue is growing quickly, and in today's economy, that's at least as big a miracle as their market cap.


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Alexis C. Madrigal

Alexis Madrigal is the deputy editor of TheAtlantic.com. He's the author of Powering the Dream: The History and Promise of Green Technology. More

The New York Observer has called Madrigal "for all intents and purposes, the perfect modern reporter." He co-founded Longshot magazine, a high-speed media experiment that garnered attention from The New York Times, The Wall Street Journal, and the BBC. While at Wired.com, he built Wired Science into one of the most popular blogs in the world. The site was nominated for best magazine blog by the MPA and best science website in the 2009 Webby Awards. He also co-founded Haiti ReWired, a groundbreaking community dedicated to the discussion of technology, infrastructure, and the future of Haiti.

He's spoken at Stanford, CalTech, Berkeley, SXSW, E3, and the National Renewable Energy Laboratory, and his writing was anthologized in Best Technology Writing 2010 (Yale University Press).

Madrigal is a visiting scholar at the University of California at Berkeley's Office for the History of Science and Technology. Born in Mexico City, he grew up in the exurbs north of Portland, Oregon, and now lives in Oakland.

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