Do not ever try to stop Jeremy Stoppelman. The CEO of YELP is sitting atop a goldmine, with the YELP properties expanding worldwide. Instead of sitting back and loafing around about the couch and hammock, he’s aggressively expanding.
After the market close, YELP reported earnings per share and revenues that were better on the top end, worse than expected on the net end. Essentially, the company is growing faster than analyst expectations; but Stoppelman doesn’t give a heap of steaming feces about making money right now. Why?
Because, like the apex predator, Jeff Bezos, Stoppelman is out to conquer the world, at least his little niche part of it.
The future of YELP is local, being able to pull up take out menus from on your mobile device and ordering food on it. They get a cut of the proceeds, like Apple does with music. Being that we’re a gluttonous people, I see great things happening for this company over the next 5 years.
Knowing this, and being smart about the extraordinary share price performance, Stoppelman decided to file for a secondary, to raise $250 million, bringing total cash for YELP near $350 million.
He now has a war chest.
Luckily, I am completely out of YELP, and have been for more than a week.
Peep my time-stamped sales inside of The PPT.
If you own the stock into the teeth of a $7 sell off, it truly sucks to be you and I will pray upon your carcass tomorrow. However, for those of us who had the foresight to avoid YELP up at 27x sales, into earnings, this is opportunity. THIS IS WHAT IS LOOKS LIKE, LITERALLY.
Just know, after the numbers were released, the stock dropped $6 straight away, only to recover all of its losses and go green. Only after the secondary was announced did the stock drop. Therefore, one must surmise that Wall St was content with the numbers, but sad faced over the dilution.
Stoppleman is simply doing his job, going the path of Amazon, setting up for long term success.
I will be buying back shares of YELP as soon as the Gods release me from the hell they’ve trapped me in.