Groupon Shares Plunge, Trading Close to IPO

As an indicator, my short position was closed out on Monday by my broker -- they couldn't find shares to borrow anymore.

Was this really a surprise for anyone? The IPO has been a trainwreck since Groupon decided to start making up financial metrics.

If Groupon could cut costs by using a self-serve model (rather than 1000s of sales staff) it could drastically cut costs and potentially make a large profit.<p>Surely at some point in the next few years they will be well known enough for businesses to go to them, instead of the other way around?

"The so-called borrow rate, or fee imposed by brokers on traders who want to sell short, has dropped to about 30 percent from 99 percent earlier in the month, Leung said. At 30 percent, Groupon’s shares would have to decline by at least that much before the trader makes a profit."<p>I must be missing something...<p>When I buy shares, I don't get to inform the broker that the stock needs to go up by 30% before they can execute my trade at today's price.<p>Betting on a stock to dip 5% seems like a big enough risk that I should be able to make money on it. 30% just sounds crazy.

Hmm I haven't seen them "plunge". I saw Them spike out the gate and gradually tail down. Which is pretty much what I expected.

Why so much of a drop today? Has any news come out recently besides the fuzzy numbers and growing competition?

Isn't it still up from where it started?

Most 2011 tech IPOs are unhappy today. The market is volatile and bearish. In the absence of news, you can't interpret stuff like this --- especially given the fact that Groupon doesn't have a listed competitor --- without understanding where the whole market is at.