Investors today finally got to see what is probably the most anticipated public offering since LinkedIn, and by many accounts, it was largely a successful offering. Groupon burst out of the gate with a solid 40% growth at the opening bell that tapered off to a still strong 31%. This is despite the relative lack of IPOs in the past two months, and more importantly, the scrutiny paid to Groupon’s financial books. But perhaps the bigger news is that Groupon is now the largest tech company by market cap to go public this year. Bigger than HomeAway, LinkedIn and even Russian search-engine giant Yandex.
Only a year ago people called Groupon foolish to pass on Google’s $6 billion buyout offer, a call that was repeated as Groupon repeatedly stumbled with management departures and revised revenue numbers. Now, Groupon is valued at a number nearly three times that which Google offered (and at more than $16 billion, it’s not far from Yahoo).
The company still has much to prove given the questions surrounding Groupon’s future growth, its business model, and the fierce competition, but today’s offering may give them temporary reprieve in the face of their fiercest skeptics.