Groupon and Zynga Revisited
Apparently, I ruffled a few feathers by raising the question, "Which is a bigger scam, Groupon (GRPN) or Zynga (ZNGA)?" Of course, one simple question can be construed in many different manners. Both companies are legitimate companies. Whether you agree with the viability of their business models or not is something else, but it doesn't make them a scam. However, the path to going public and what has occurred since then does raise a few questions.
The biggest scam here wasn't Zynga or Groupon but the valuation that Wall Street banks were able to bring for both of the companies when they went public. Retail investors were sold a bill of goods. Of course, we could sit here and argue all day long that something is worth what someone else is willing to pay for it, but there is somewhat of an expectation that Wall Street will do a little bit of honest work before bringing a company public. The scam here was the valuation Wall Street sold to the public, not the companies themselves....240 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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