"What on earth are you thinking?," asks Henry Blodget to those buying Yelp (YELP +64.3%) at...

|About: Yelp (YELP)|By:, SA News Editor

"What on earth are you thinking?," asks Henry Blodget to those buying Yelp (YELP +64.3%) at ~$25/share. Yelp's growth rate, while high, is below that of Groupon and LinkedIn, and unlike those companies, it's also posting huge losses. Moreover, Yelp is trading at nearly 20x its 2011 revenue (other digital media names trade at 3x-8x), and it needs to keep a giant sales force on staff to bring in ad deals. (more)