In a key step towards an Initial Public Offering (IPO), the online coupon company Coupons.com has filed it S-1 form with the US Securities and Exchange Commission. This is a crucial stage for a company to go public. If things go well with these filing, it’s going to be relatively smooth sailing for the company to become a public company. Well, interestingly enough, but not surprisingly, this company has shown a series of losses. It has never made money ever since it started. Be that as it may, it looks like it may make some money some time in the future according to the traction that it is making that profitability might happen fairly soon. Why? Its net losses is shrinking every single quarter. Regardless, this is a great move on Coupons.com’s part. Why? Money losing companies like Twitter are doing quite well in the stock market. So, why not join the party, right?
If this sounds like shades of Web 1.0 or the initial dot com buzz, you’re absolutely correct! Regardless, investors know what they are doing. The markets knows what it’s are doing and this is just another company trying to raise money through the public equities market. Everybody is an adult. Everybody should do their due diligence. Still, it does show the current market sentiment has changed quite a bit. It used to be that if you are an internet company, even if you made a little bit of money, you would be high on crack cocaine if you wanted to go IPO. The market, as a whole, has soured on tech IPOs. As a result, they are very, very skeptical of tech companies, especially, those who make their money through advertising. Well, thanks to Twitter, all of that is out the window and it’s a party where anybody can play. Good luck to Coupons.com!