Groupon Stock Drops 12% As Customer Refunds Increase

While other IPOs such as LinkedIn and YELP have had tremendous recent success, social buying startup Groupon has been on a bit of a roller coaster ride and it looks like they just went over a steep drop.  The stock is down over 10% today on news that four-quarter revenue and income is down due to a higher than expected number of customers asking for refunds.
Groupon is a social buying service that allows users to buy specific items at discount as long as a large number of people participate in a given deal.  For example, a massage parlour can offer 30% off their regular price, as long as 100 people purchase the deal.  This incentivizes users to invite their friends to participate in the deal, and if the 100 number is hit, the deal is activated.
The problem is that a lot of businesses have not prepared themselves for the influx of customers, and the poor service has sometimes led to users demanding refunds.  Another anecdotal reason for the refunds is that the deals are often so enticing that people begin to hoard massive numbers of deals, but then realize they probably won’t need to cash in on 6 massages in the next few months.  Read more about the refund issue here.

As we can see in the chart, the stock began to rebound after a big hit in November during the IPO, and had reached heights above 20.  As reported in MarketWatch, Justin Post of Bank of America/Merrill Lynch had recommended a buy on the stock, but the company has not performed as well as hoped.

“Groupon has been our most disappointing call in 2012 as we thought 4Q margin upside, a rebound in 4Q take rates, and data suggesting an improving competitive landscape would improve sentiment on the stock,” wrote Justin Post of Bank of America/Merrill Lynch in a note to clients on Monday.

This is a far cry from when Google was attempting to buy the company at a valuation of $6B, although today’s price does have its market capitalization at $8B… but that number is falling fast.

Foursquare Shuts Down Location API for “Girls Around Me” App

A recent application that allowed users to spot the girls that were within their vicinity has had some of its rights revoked by Foursquare.  The app, called “Girls Around Me”, was scanning public Foursquare and Facebook to determine whether there were any females in your location.  If a girl had checked in to a location near you or had listed personal location information on Facebook, GAM would find this and show their position overlaid on a map.  Obviously, when this came to light people were a bit unnerved by the whole thing.
The app was first discovered by John Brownlee over at Cult of Mac and has since gone viral.  John tells the interesting story of showing this app to friends to set their “skin crawling”, and explains how the most worrying thing about the app is how it uses public information — nothing the app is doing is technically forbidden.  It raises a few questions for platform creators — questions that other services Tumblr have been facing recently: Do you draw moral and ethical boundaries on the content on your site?
It seems like the answer is yes for extreme cases like these.  There’s no reason to let this application continue to provide potentially dangerous information to people, and Foursquare took the opportunity to emphasize this by shutting down GAM’s access to the Foursquare location API.  This was followed by Apple taking the application down from the App Store.

DIY SEO Startup BrandYourself Has Nearly 6,000 Sign-Ups

BrandYourself made the famous startup pivot earlier this month, and now it’s sharing some data about the initial results.
The company started out as a way for people to control the impression they made online, both through search results and on social networks. It even recommended articles that you could read and share in your chosen subject area. Co-founder and CEO Patrick Ambron says his team eventually realized that the approach was “too much,” and that “the one BIG thing people loved about us was helping them improve their search results.”
So the new version of BrandYourself pares away all the other features, focusing exclusively on your personal search results. In both cases, BrandYourself pitches itself as a more affordable, DIY alternative to a service like Reputation.com. Instead of hiring someone to improve your results and paying them thousands of dollars, you can just log in to the BrandYourself dashboard, submit the links that you want to show up more prominently in your results, and get recommendations on how to improve their placement (for example, it recommended that I connect my personal website to a BrandYourself profile page, and also include my name in the text of the website). BrandYourself also tracks whenever the rankings change. You can get free recommendations on three links — after that you have to pay for premium membership, with pricing that starts at $9.99 per month.
Ambron says the new version of BrandYourself launched on March 8, and that 5,870 people have signed up since then. And of those sign-ups, 154 of them became paying members.
Oh, and this isn’t a business win, but it’s nice recognition: BrandYourself won the Best Bootstrapped Startup award at the South by Southwest Startup Accelerator earlier this week.

9 Ways Students Can Use Social Media to Boost Their Careers

Kate Brodock is executive director of digital and social media at Syracuse University, where she leads efforts in the space. Connect with her on Twitter at @just_kate and @othersidegroup.
If you’re a Generation X-er or older, you likely use social media to cut it in the real world. You may also use social networks for personal reasons, but it’s always with the understanding that you’re a professional.
But newer generations of college graduates began their social media experience as a very personal one. And the shift to using social media for career development may seem optional. But it’s a necessary evil at the very least, and can actually be quite beneficial to your future at the very best.
Here are a few things students should consider when starting to use social media professionally.

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1. It’s Not the Same

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Most teens and young adults have used social media to connect directly to friends and share personal experiences casual conversations with their networks. Yet interacting on social networks with an eye toward your career is different than doing so for purely personal reasons.
Using social media for professional purposes doesn’t mean you have to give that up. In fact, oftentimes it makes a person come across as more genuine and more approachable. But refining your language, highlighting content and information that’s more career-focused, and connecting and conversing with more people outside your immediate group of friends signifies that you’re interested in more than just the personal.

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2. Power in Connections

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Social networks offer endless ways to connect with a wide-range of people with little effort and to organize those connections — through lists, circles or groups — so you can use them more effectively.
Build each network to create relationships that can be nurtured through interaction and conversation. By cultivating and organizing the network you create, you’ll be more effectively able to act upon professional opportunities.

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3. It Can Help You Find a Job

 

Beyond the ability to connect and converse with people and groups from a professional standpoint, social media can actually help you find that job. Nearly every social networking site posts loads of job opportunities.
Less obvious, but perhaps more effective, is the ability to connect directly to the brands you’d love to work for, as well as the people behind those brands. While you keep your eyes peeled for job postings, take some time to engage with these brands and people, and establish a relationship with them.

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4. Learning Is Still Good for You

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By interacting with professionals, industry media outlets and experts in your desired field of work, you’ll be able to deepen your own level of knowledge of that field and stay on top of trends and current issues. It’s an excellent supplement to your in-class work and good preparation for the continuing learning you’ll need to do when you graduate.

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5. You Can’t Hide Behind the Curtain

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The speed and virtual aspect of social networks can tempt people to act less than professional. For instance, sometimes harsher or more sarcastic interactions are acceptable on social media. And some people believe that because social media is generally a public forum, they should be able to speak freely and openly.
No matter your stance, disrespectful interactions with others (strangers or colleagues) is a huge no-no. If you wouldn’t say something to a person face-to-face, it probably means it isn’t appropriate for social media either. The same social norms apply whether online or offline, and the same level of respect and collegiality is expected on these channels.

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6. It’s Not Just About You

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Constant self-promotion is almost always frowned upon in social media. Keep most of your posts (I suggest at least 80%) to conversation, third-party content, general comments and questions, and keep the sales pitches at a minimum. David Armano, EVP of global innovation and integration, discusses the overuse of the #humblebrag hashtag. You get the point.
Instead, think about what types of content will give your audience the most value, especially when it also suggests you’re open to educating yourself on a wide-range of ideas.

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7. Strut Your Stuff

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Social networking is a fantastic way to showcase your knowledge on your field of interest. Using many of the tactics suggested above shows you’re paying attention to your target industry and demonstrating a certain level of critical analysis.
By tweeting relevant articles, or commenting on industry trends on a personal blog, you can show your own level of interest and personal development outside of classwork and internships.

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8. You Will Get the Once-over

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Employers, future colleagues, industry leaders and other professionals do look at your social media activities. That being said, it’s a great opportunity to show your interpersonal skills, in addition to your own level of knowledge and interest in the field. College students sometimes get a bad rap, but by engaging with professionals, you can demonstrate your skill set and level of maturity.

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9. What You Do Now Will Pay Off Later

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Much like searching for a job, if you start curating your social media presence after you graduate, you’re already behind. By thinking about how to use social media professionally while you’re still in school, you can position yourself as forward-thinking, forge stronger industry connections, and strengthen your on-paper credentials, making you a much more attractive candidate to your future employers.
What other tips do you have for students to improve their professional social media presence? What can they work on and where do they excel?
Image courtesy of iStockphoto, atreides64, eyeidea

Anonymous Threatens Facebook Shutdown Jan. 28[VIDEO]

  Anonymous claims on Twitter that the video is fake, and they do not plan to take down Facebook.
Anonymous is planning to target Facebook in an attack Jan. 28 — at least that’s what a video uploaded to YouTube Monday is claiming in the name of the hacker network.
And you thought a day without Wikipedia was bad.
“An online war has begun between Anonymous, the people and the government of the United States,” the video begins. “While SOPA and PIPA may be postponed from Congress, this doesn’t guarantee that our Internet rights will be upheld.”
Following the U.S. government shutdown of file-sharing site Megaupload Friday, Anonymous attacked the U.S. Department of Justice’s website, among others.
Monday’s YouTube video calls on the American people to participate in the hack by downloading Low Orbit Ion Cannon (LOIC), the tool that was successfully used to target the Department of Justice. LOIC crashes websites by sending thousands of information packets to their servers.
The video gives instructions for downloading and running the program, as well as a time — 12 a.m. on Jan. 28 — to launch the attack. No time zone, however, is distinguished.
“Would you like to become part of the greatest Internet protests and first official cyber war?,” the video asks. “Operation Global Blackout is ongoing and everyone can be a part of it.”


Facebook, of course, is one of the world’s largest websites, operating through thousands of servers located across the world. In the video, Anonymous acknowledges the difficulties of attacking such a large site.
“While it is true that Facebook has at least 60,000 servers, it is still possible to bring it down,” says the Anonymous voice. “Anonymous needs the help of the people.”
YouTube commenters have raised an important question, Why would Anonymous want to crash Facebook, after the site came out against SOPA and PIPA?
The video essentially equates the privately-owned company with the U.S. government, with no explanation for the linkage. CNET postulates that Zuckerberg took too long to voice his opposition, landing his social network a spot on the potential targets list.
We’ve heard this threat before from the global network of hactivists, who promised to shut down the site Nov. 5, 2011, over user privacy concerns. Ultimately, no attack was executed and the loosely-connected hacker network called the threat the work of peripheral members.