GSV Capital CEO Michael Moe Sees Groupon at $50 per Share

After months of waiting, Groupon

finally went public last Friday in the IPO that was priced at $20 per share and opened at $28. To get an expert's insight in the IPO and company itself, Benzinga spoke to Michael Moe, CEO and co-founder of GSV Capital

, whose portfolio includes notable technology companies, such as Groupon, Twitter, and Facebook. Michael Moe has as outstanding track record of spotting winning companies in an early stage. For example, in 1992 he predicted that Starbucks

would become a superstar company. Moe's first thoughts on the IPO were that he is glad the IPO is in the past now and people can focus on Groupon as a company. He sees similarities with Google's

IPO in 2004, as both Groupon and Google accidently revealed too much information during their quiet periods, causing skeptical analysts to cast doubts on their respective business models. As an investor in the company, Moe had a very positive outlook on Groupon's future, and he holds a $50 price target for the next six to twelve months. Moe cites Groupon's dominant leadership position in the industry as the main factor behind the predicted success. He also mentions Groupon Now, a feature that allows merchants to control their inventories, as a value-adding element creating win-win situations. Despite the company's dominance in the market space, many analysts have voiced their concerns over the sustainability of Groupon's business model and its ability to defend its market share against large competitors, such as Google. In response to the bearish analysts, Michael Moe said that interesting companies always have bearish analysts and that at the moment it is easy to make the bearish case, as the company is not making money.

Traders who believe that Michael Moe has hit another homerun by investing in Groupon before its IPO might want to consider going long Groupon

Traders who think that Groupon's business model is not sustainable and that it will not be able to defend its market share could look into shorting the company's shares. Alternatively, going long Groupon's competitors, such as, Google could be a profitable strategy.