People Are Shorting Groupon Like Crazy

groupon, nasdaq, ipo, bell ring, andrew mason, nov 2011


Basically, it’s impossible to short Groupon now because everyone has the same idea.From FT:

The shares were still 21 per cent higher by Thursday. But, when it first became possible to short the shares this week – meaning to borrow them from another investor and sell them, hoping to later buy them back at a lower price – short sellers borrowed nearly all the available shares, according to Data Explorers, which tracks stock lending.

Basically everyone has the same idea with this one: The stock is overvalued. Furthermore, because of the nature of its business — how it engages in some accounting, etc. — it’s a classic short-seller target.

Finally, investors have seen the huge opportunities in shorting other IPOs (LinkedIn, but also several of the China net stocks that used to be popular), and want to cash in again.

SEE ALSO: The 15 stocks that people are shorting like crazy >

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