Moreover, there are plenty of other reasons to be bearish on the Groupon model. Competition is fierce and still intensifying. Profits are still elusive, and the long-term value add to customers is, in my opinion, negative. I was bearish when the stock dipped below $10, so I'm seeing the spike as an opportunity for those with the willingness to establish short positions. If you were skeptical about Groupon's business model before but didn't quite have the guts to short the stock (a description that fits me quite well), you might be tempted a bit more now that shares have surged 40% in a matter of hours. Throw in the fact that insider trading is apparently par for the course, and there's a strong argument building on the short side here. This is not the time to start chasing returns. If anything, it's once again time to short Groupon.