Disaster averted. The YELP numbers were very good, good enough, I believe, to stave off any degenerate short raids. Throughout the day, I twisted the knife embedded in my gut, thinking of how to rebuild my year, should YELP disappoint. But they didn’t.
This is a quarter, as an investor, you can build on. The company is on the cusp of going EBITDA positive and before you know it, they will be profitable. This is, with pulling punches, one of a select few premium names in social networking. Moreover, I do not believe Facebook, Google, Microsoft– or other big internet companies– will just sit there looking at YELP kill it. They will try to acquire them.
For the day, I made 0.9%.
UPDATE: Here is a replay of the YELP call.
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Cool!
Good day pal, I went short GMCR. I want to see YELP get M&A’d at ~$50.
Not to feed speculation, but the very short CC could be due to something being in the works. If FB, GOOG, AAPL or MSFT were sniffing around, current management may be better served by sticking to known facts and not getting too expansive in their conference call comments.
Yeah, late to the party but also shorted GMCR. Story seems over on that one. The only thing that could possibly save it is buyout speculation.
Yeah, they may get M&A’s but can Fly wait for that 30% invested?
They spent a ton of money this quarter, which is great to see. They need to spend like drunken sailors in a New York City bar to stave off any potential competition.
The main question is whether their current market position can be maintained and grown agressively across the globe with Google and Facebook staring them down.
Google and Facebook already have huge amounts of consumer and business contacts. I think the market is assuming they will create competing sites and put yelp out of business in a heartbeat.
Yelp has a formidable footprint in major metropolitan areas within the US. Google already bought Zagat last year. Everyone already knows and trusts Zagat, but they don’t have the social networking component that Yelp has.
If anyone is interested in buying Yelp, it would be Facebook imo.
Are you serious about competition? There isn’t any.
YELP needs to start an aggresive advertising campaign. Look at Priceline, Orbitz and Geico, from zero to hero. The CEO needs to get with the program and get a buzz going.
Why would they aggressively advertise a free service that has no competition? Maybe I’m bias in a sense that I live in a larger city, Boston, but everyone I know uses and loves Yelp.
Fly, Yelp may not have an immediate strong competitor.
However, many businesses apparantly have 2 problems with them:
* they do promises on the phone of increasing your sales by attracting eyeballs, etc… yet they do not perform
* they made a fundamental mistake by allowing just anyone to cast negative ratings and positive on businesses. people know that the reviews are rigged and not 100%. businesses dread marketing with yelp as some competitor may pay some people to negatively downgrade them openly and even just the owners of the other business.
their model is currently fundamentally not liked by business. that is the reason i would not buy them until they address this.
Zagat? At 26 years of age, I can’t think of a better way to turn a girl off than to break out the Zagat guide and decide where we would dine that night. For the sake of everything that is good, I hope that Zagat and Yelp never collaborate in any manner. My view is also that Yelp is now too far ahead to be caught by any competitor. Google acquiring the dinosaurs guide to nightlife will probably be about as well accepted/implemented as Google+ (if anyone even remembers that horse shit).
The thought of Yelp being acquired by the Zuck could be reason enough to own some shares. Especially given Facebooks affinity towards paying asinine amounts of money for companies that don’t turn profits.
I saw this post at work, where the YouTube link was blocked, but would’ve doubled down on a Rick Ross feature. The Rick Ross mentionings on this blog NEVER get old.
Great call, Fly.
What happened to henry fool? Blog is gone..
Henry Fool’s 2 mo tenure as Featured Blogger is up. I have term limits.
http://ibankcoin.com/henryfools/
When Fool took that 60% loss on $SYNM, all I could do was wonder why he was featured.
But, as a former $SYNM owner, I can’t give too much criticism.
Good ol’ stocks, like old girl friends, are tough to turn down when they put on their old garb, wear your gifted trinket and smile with the proper gestures.
Can’t fault a man for “suchness.”
DECK was up 4.76% today and up 9.6% from the low 2 days ago
Congratulations for not blowing up with YELP.
this is just the way i like it..nobody trusting anybody..and i know what your thinking , should i sell off or should i cover shorts ,should i add and get it shoved in my ear ,should i sell some should i hedge …some of you will be up all night ..i will be sound asleep as counting all the money i just pillaged from your accts has made my eyes tired
Speaking of hot internet companies I just registered the domain name lebronjimmy.com… Soon you will be able to buy the “Lebron Jimmy” jersey, made of the finest Asian cotton $10 dollars can buy. IPO is forthcoming.
Let’s see, how did HDSN do today ? ………. Aacck !
http://youtu.be/0M0RbaPxq2k
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Gmcr getting clobbered. Catch a falling knife anyone??
Why can’t I see all the comments on my iPhone app???
Thanks for putting it. I am certainly going to search for a copy.