I love YELP. Anyone reading this site for more than a month knows I’ve been a huge supporter of the company, having been a shareholder–enduring the whipsaw roller coaster of the fucktard. However, after seeing the Thiel situation and the unbelievable catastrophes in ZNGA, GRPN and ANGI, I am done with the sector. If we’ve learned anything in recent weeks, insiders of these social media plays, the Vulture Capitalists, will not hold stock. They are sellers at any price.
Well, YELP’s lock-up period expires on 8/28. Both Seminole Capital Management and Cupps owns a combined 20%+ of YELP. I doubt those dicksuckers will resist the temptation of hitting the bid, whenever given the opportunity. After all, it is “their job” to do so.
The entire social media sector is a mess and I wouldn’t consider touching any of them until valuations compressed to 5 times sales. That’s another 50% drop for Facebook, just in case you home gamers aren’t paying attention.
Moving on, I think stocks will trade lower today. Europe is weak and we’re due for a little consolidation. I am not a buyer heading into September, even though the problems of the world appear to be “solved.” Nevertheless, this still is a long only tape, as I feel betting against the central banks is a suckers bet.