After a highly successful initial public offering (IPO), daily-deal website Groupon stock has tumbled in value for three days straight. Earlier in November, when the IPO was first offered by the Chicago based company, shares closed at approximately 31 percent above their initial offering price. At the time CNN had reported Groupon (trading under the ticker GRPN) opened at $28, which is 40 percent above the company’s initial public offering of $20. Now the shares have tumbled in worth, plunging for the third day in a row just prior to the Thanksgiving holiday in the U.S. According to Bloomberg Business Week, on Nov. 23 Groupon stocks fell below its IPO price for the first time since the company went public. At the close in New York, the stocks had fallen to $16.96. Groupon burst on the scene in 2008 and has been pretty visible every since, growing significantly over time. Considering the company’s initial success, perhaps it is surprising the stock has not retained any sort of stamina. However, experts are seemingly not surprised. While a lot of fanfare surrounded the IPO, there are a lot of questions and concerns many have about the company. Bloomberg reported, “There was a lot of skepticism to begin with about Groupon’s model, its margins, its growth rate, but now you throw on a world economy that’s very unpredictable and shaky, and I think people are doing a flight to safety again,” Stephan Paternot, founder of Actarus Funds, said in an interview with Bloomberg Television. An article by CNN echoes the same sentiments. CNN Money reported, “The stock has been very weak this week, as investors have continuing concern about growing competition and Groupon’s overall business fundamentals,” said Ed Woo, analyst at Wedbush Securities. When Groupon first emerged three years ago, both the company and the idea behind it caught on like wildfire. However the burning desire for this company has seemingly snuffed itself out over time and many competitors have arisen in the meantime. The current issues plaguing Groupon include analysts criticizing Groupon’s business model, or as CNN notes “lack thereof.” The company is currently losing money, reportedly has questionable accounting practices, and isn’t experiencing revenue growth according to reports. It did not help when Forrester Research criticized the company in October. “Groupon is a disaster,” says Sucharita Mulpuru, a Forrester Research analyst. “It’s a shill that’s going to be exposed pretty soon.” Groupon is perhaps a perfect example on how an Internet company can rise and fall in a relatively short period of time. Trends change, technology changes and what’s hot today can be ice cold tomorrow. It doesn’t help that many business owners, who use the service to entice customers, are finding they are losing money and not gaining customers. So something isn’t working. And competitors are finding their niche in the market. Groupon’s future is not set in stone, but unless something changes, currently things aren’t looking too good for the company. CNN also reported LinkedIn, another Internet company, fell four percent on Wednesday at market closing. Category:Home › Other • Pomegranates: A newly discovered superfood • Where did the joke why did the chicken cross the road come from and why is it funny? • Can mothers diagnosed with bipolar disorder make good parents? • Spiritual evolution of human consciousness • Tips for getting a college basketball scholarship • Living with Pseudotumor cerebri (PTC) • Caring for the caregiver • Technologys impact on society