Google was profitable. And I assume any money they were spending was on architecture/moat not customers. I'm not sure what the economics of the Old Navy deal were yesterday but I assume it was a loss, on the day GRPN announced IPO they were losing money to "look good" it's how their business model works.
" losing money to "look good" it's how their business model works." that's the fundamental problem, their business model is losing money. These types of business models tend to drive poor stock valuations in the long term. See GM for example.
