The summer of discontent -- well, that's what it seems to be from the perspective of the not-so-new web darlings -- might be coming to an end, but months (perhaps years) of misery awaits these erstwhile rocket ships. The news reports of late have reserved particular vitriol for Groupon (s GRPN), the company that has seen its market valuation decline almost 82 percent since its went public.
Om Malik has some good points in this article in which he looks at companies like Groupon that hold themselves out a technology companies, but whose business model and valuation (and value proposition) are not really in line with true tech companies. It is important for investors and the companies themselves to understand this the distinction between a technology company and a company that provides not technology products/services using the web or social networks as their sales pipeline. Otherwise one or both can have a rude awakening when their results (in terms of growth, development, and valuation) do no meet expectations.