Seeking Alpha

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

"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)
Comments (9)
  • its just traders. no individual investor in their right mind would be buying yelp at these prices. itll have a nice run until the trend ends and then it will go to 8 bucks per share, where it probably should be
    2 Mar 2012, 02:46 PM Reply Like
  • Yep. You can't borrow shares to short though.
    2 Mar 2012, 03:15 PM Reply Like
  • id rather wait to buy the puts anyway. let it run up
    2 Mar 2012, 03:19 PM Reply Like
  • I was looking to buy puts at the end of the day but couldnt find any, how/when can puts be bought for YELP.
    2 Mar 2012, 04:53 PM Reply Like
  • for any new issue it takes a few weeks. dont worry you will have plenty of chances to buy puts.
    4 Mar 2012, 02:00 PM Reply Like
  • I haven't seen such a load of crappy companies going public since the era of valuations based upon "eyeballs and pageviews".

     

    Truly this has to be an Internet bubble 2.0 but unlike the last time it has none of the fun.
    2 Mar 2012, 02:54 PM Reply Like
  • And it shows you how shallow our economy has become...this is not heavy manufacturing or steel factories....is toys....social networking.....come one...the country that builds the sticks ,bricks , and mortor wins...we play with toys..
    2 Mar 2012, 02:58 PM Reply Like
  • Buy puts, puts, and more puts. Yelp will fall like " Belushi on the ladder " in Animal House. Good comment @ youngman442002.
    2 Mar 2012, 04:22 PM Reply Like
  • "What on earth are you thinking?" Well Henry I am thinking of making money on YELP quickly, “as I did!”….
    Is that what we are here to do? No need to cry about it, just cash in & move on!!!

     

    Get on those B-Positive vitamins and off the B-Negative ones.
    4 Mar 2012, 08:47 AM Reply Like
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