Wednesday, December 1, 2010

A tale of the tape and the ghost of '06

Groupon is the fastest growing commerce company the world has seen (33mm subscribers, est 2010 revenues $350mm). Similar to Facebook, it has little proprietary technology, yet has emerged as the preferred place people are using to connect with local commerce. Also, similar to Facebook, pundits first denied the opportunity, derided the founder, sniffed at the VC valuation, admired their success, and are wondering how they missed it.

I think Groupon is now, in part riding the 'we missed Facebook wave'. They deserve it as in an environment where demonstrated growth, a dominant market leadership position in a huge untapped market is at a premium, it's no wonder GOOG is rumored to be in deep discussions to acquire the company. I am just surprised that other companies, noted below are not visibly in the fray....especially after they all 'missed' Facebook (well, Yahoo did try in 2006.

Market cap Growth %

MSFT $216B 25

GOOG $177B 22

Amazon $79B 39

Ebay $38B .5 (no typo)

Yahoo $21 2

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