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Groupon's financial performance has been plenty ugly. It turns out LivingSocial looks worse. That calls into question the big valuation LivingSocial received in its December round of financing while raising a red flag for Groupon investors ahead of the daily-deal company's fourth-quarter earnings report next week.

Financial results for LivingSocial, Groupon's main rival, were outed in Amazon.com's annual financial filing on Wednesday. Amazon has a 31% stake in the company.

For starters, LivingSocial's revenue is far short ...

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