Wed, Jul. 20, 12:16 PM
- Yelp (NYSE:YELP) has turned higher, up 1.7%, after opening low following a downgrade at Citigroup.
- The firm bumped its price target, though, to $31 from $27, implying 6% upside from yesterday's closing. Shares have doubled up from February's 52-week low of $14.53.
- That's despite no change to consensus forecasts, notes Citi's Mark May, which means Yelp's now more in line with comps. Meanwhile, management has downplayed positive growth in ad revenues (making surprises less likely), and user mobile and transaction revenue growth slowed more than expected.
- Earnings also face a risk so long as margins stay under pressure: Company expectations "assume a significant increase in margins/leverage in 2H16."
Wed, Jul. 13, 11:57 AM
- While the Street has reasonable expectations for H2 of this year, too high of a bar has been set for 2017 and 2018, say analyst Peter Stabler and team, downgrading Yelp (YELP -3.9%) to Underperform from Market Perform. The price target range is trimmed by $1 at both ends to $21-$23 (current price is $29).
- They take note of increasing competition and challenges associated with the CPC (cost-per-click) migration. By Stabler and team's figuring, Yelp needs to serve between 2x and 10x as many impressions to generate the same level of ad revenue vs. CPM packages.
Thu, Jun. 30, 8:22 AM
- MKM Partners raises Yelp (NYSE:YELP) to Buy from Neutral with a $40 price target.
- Analyst Rob Sanderson believes the company trades at a discount to its peers and a rebound in sales productivity will drive momentum in revenue growth.
- YELP +4.1% premarket
Tue, Jun. 21, 7:51 AM
Mon, Jun. 20, 7:11 AM
- Deutsche Bank raises Yelp (NYSE:YELP) shares to Buy from Hold, while increasing its price target on the stock to $33 from $26.
- The firm cites "stabilized salesforce productivity, more confidence in management, and improvements in ad units and systems bolstering our long-term outlook."
- YELP +2.2% premarket
Tue, May 24, 2:37 PM
- In an overhaul of the company's core AdWords search ad service (easily the company's biggest profit engine), Google (GOOG +2.1%) is expanding the amount of text that can respectively be shown in ad headlines and descriptions to 30 and 80 characters from 25 and 35, and set bids for ad prices based on device type (PCs, phones, and tablets).
- The company is also launching an ad solution for the 2M+ sites/apps on its display ad network that automatically adapts to the kind of content being shown, and giving advertisers access to cross-exchange inventory (increases the number of sites/apps they can reach).
- Google argues support for longer ad headlines and descriptions is helpful on mobile, where consumers "[want] to know exactly what you offer before tapping into your website." Tests showed an increase of up to 20% in click-through rates.
- Meanwhile, in a fresh attempt to get more of the local ad dollars moving to online channels, Google is launching local search ad options for Google Search and Maps that let advertisers prominently show their business locations. It's also testing Promoted Pins, which allow a business' logo to appear within Google Maps, and giving local businesses the ability to showcase special offers and inventory on their pages.
- The local ad efforts represent additional competition for Yelp (YELP +2%), which is going after the same ad dollars. Google notes nearly 1/3 of all mobile searches are location-related, and that location-related searches are growing 50% faster than mobile searches in general. Over half of Google's total searches are now via mobile devices.
- Now read Google: Instant Apps Technology A Game Changer
Fri, May 6, 3:56 PM
- Yelp (NYSE:YELP) has gained 23.2% today after yesterday's earnings showed strong guidance and a revenue beat paced by big increases in local revenue.
- Analysts came in with boosted price targets in response. RBC Capital, already bullish on the stock, raised its target to $36 from $33 (implying greater than 36% upside even from current price), and Mizuho and MKM Partners have each raised price targets to $24 (below today's price, but 12% higher than yesterday's close).
- Deutsche Bank raised to $26, speculating whether the standout quarter might be "the beginning of a run with estimates moving higher."
- There are cautions: "The company noted special promotions around the self-serve channel that suggest the Q/Q growth in LAA (local advertising accounts) accounts may not be sustainable," says analyst Lloyd Walmsley. Meanwhile, a change in CFO to Lanny Baker effective on Monday always presents some guidance risk; he's a strong choice, but "any transition poses some risk."
- Now read Yelp: Local Game Changer »
Fri, May 6, 12:45 PM
Fri, May 6, 9:11 AM
Thu, May 5, 5:35 PM
Thu, May 5, 4:36 PM
- Yelp (YELP -1%) has gained 7% in immediate after-hours trade after its Q1 earnings beat expectations and featured upbeat forward guidance.
- Revenues grew 34% Y/Y; excluding brand advertising revenue, sales grew 42%. The company lost $15.5M on a GAAP basis, but non-GAAP income came to $0.08/share vs. expectations for $0.03/share.
- Local revenue growth hit 40%, to $138.1M. Transactions revenue was $14.5M, mainly due to acquiring Eat24 in Q1 2015.
- About 21M unique devices on average accessed the mobile app each month in Q1, up 32%.
- The company guided to Q2 revenues of $167M-$171M (vs. consensus for $167.5M) and EBITDA of $21M-$25M (vs. $21.2M consensus). For the full year, revenues are forecast at $690M-$702M (vs. expected $691M) -- about 27% growth at the midpoint -- and EBITDA is expected at $93M-$105M (vs. $94.9M expected).
Thu, May 5, 4:17 PM
- Yelp (NYSE:YELP): Q1 EPS of -$0.20 misses by $0.04.
- Revenue of $158.6M (+33.8% Y/Y) beats by $3.03M.
- Shares +8.5%.
Wed, May 4, 5:35 PM
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Tue, May 3, 9:15 AM
Mon, May 2, 5:04 PM
- David Einhorn has reportedly made positive remarks about YELP in his Q1 letter to Greenlight Capital investors.
- In February, Greenlight disclosed it took a 380K-share position in the local reviews leader in Q4. Greenlight's Q1 13-F filing (due later this month) will show how many Yelp shares the firm owned at the end of March.
- Yelp is up 6% after hours to $22.79.
- Earlier: Cantor argues Yelp's local ad opportunity is substantial
Mon, May 2, 11:22 AM
- via Cantor's Youssef Squali:
- "We expect 1Q:16 results, due out 5/5, to be in line with Street expectations driven by local ad revenue growth, which, while decelerating, should still be among the highest in our coverage universe.
- "YELP has been a material underperformer in the last two years, due in part to slowing Y/Y growth and rising competition. That said, local ad revenue continues to grow at a much faster rate than overall online advertising, and our checks show 1Q:16 traffic and engagement for Yelp continued to grow at healthy hsd/ldd percent rates.
- "We believe that the local online ad opportunity remains substantial and the number of players with scale, brand and network effect is limited, positioning Yelp as a key beneficiary over time.
- "We maintain our BUY rating and $38 PT." Implied upside 79%.
- Squali is ranked #14 out of 3,908 analysts on TipRanks.
- Now read Yelp Is A Mess »