Shares of the daily deals website Groupon (NASDAQ:GRPN) pulled back hard today, down more than 20% after the company reported a loss for Q4, and guided lower than expectations for the coming first quarter. Is this cratering temporary, or is this a business that investors should see as fundamentally broken?

In this segment from Friday's Investor Beat, host Chris Hill and Motley Fool analyst Jason Moser take a look at Groupon and its business model. With competition coming from Living Social and other deal providers in this space, Jason sees no real competitive advantage for the company. While it is making a concerted effort to dramatically change its focus and business model toward becoming a massive international hub for all things e-commerce, Jason sees big problems there, too, namely, other e-commerce giants that already have a huge head start. While the stock may look cheap after today's big pullback, Jason reminds investors that cheap alone does not an investment thesis make.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.