Yelp: You'll Be Sorry You Missed It
Futuristics • 30 Comments
Futuristics • 30 Comments
Fri, Feb. 5, 12:43 PM
- On a day the Nasdaq is down 2.4%, Internet stocks are seeing outsized losses after LinkedIn (down 41.3%) issued weak Q1/2016 guidance with its Q4 beat.
- The professional social networking leader forecast its corporate hiring solutions business would see slower growth in 2016 (international macro issues were blamed). It also noted display ad sales fell by a high-30s % Y/Y in Q4 amid ongoing secular industry pressures, and reported just 7% Y/Y unique visitor member growth.
- Facebook (FB -5.5%), which soared last week after blowing away Q4 estimates on the back of 57% Y/Y ad revenue growth, is among the casualties. As is Amazon (AMZN -4.9%), which sold off last week after missing Q4 estimates and issuing in-line Q1 sales guidance, is also down sharply. As is Twitter (TWTR -5.3%), which reports in five days and continues trading near post-IPO lows amid growth/engagement concerns.
- Other decliners include Yelp (YELP -7.9%), TripAdvisor (TRIP -6.3%), Expedia (EXPE -6%), LendingClub (LC -8.3%), Wix.com (WIX -6.8%), Wayfair (W -7.6%), Groupon (GRPN -4.9%), Shopify (SHOP -6.3%), and Zillow (Z -6%), as well as ad tech firms Criteo (CRTO -8.9%) and TubeMogul (TUBE -7.6%). The aforementioned companies are generally expected to post Q4 results in the coming weeks.
- Earlier: Enterprise software and security stocks hammered after Tableau/LinkedIn's earnings
Thu, Jan. 14, 10:30 AM
- B. Riley's Sameet Sinha has downgraded YELP to Sell, and cut his target by $6 to $15. Shares have fallen to new 52-week lows.
- Sinha notes Quantcast estimates Yelp's traffic fell 13% Q/Q in Q4, a decline much larger than the 2% estimated for Q4 2014 and translating into an 8% Y/Y drop. "While management has indicated expectations for a seasonal decline in traffic in 4Q15, we believe -13% is indicative of a major problem as it implies traffic decline for the first time on a Y/Y basis." Google search algorithm changes have been weighing on Yelp's traffic for some time.
- He adds the cost of a new app install rose to $5 in Q3 from $3.30 in Q4, and thinks the trend may have continued in Q4. "This could potentially necessitate higher spend as it is a strategic imperative for YELP to develop its own sources of traffic, especially as GOOGL applies additional pressure."
- Competition from the likes of Facebook, Google, and Amazon (has been around for a while) is also mentioned. Facebook recently began prepping a searchable local services directory that leverages info and reviews on Facebook pages.
Thu, Jan. 14, 9:16 AM
Wed, Jan. 13, 2:59 PM
- It's another ugly day for stocks, with the S&P down 2.1% and the Nasdaq 2.9%. Many high-beta tech names are naturally seeing even steeper declines.
- Major decliners include driver-assistance hardware/software provider Mobileye (MBLY -6.4%), travel reviews/bookings search site TripAdvisor (TRIP -5.8%), mobile payments provider/recent IPO Square (SQ -7%), online furniture leader Wayfair (W -6.2%), craft/vintage goods marketplace Etsy (ETSY -7.2%), SMB Web services provider Wix.com (WIX -7.9%), and CAD/CAM software leader Autodesk (ADSK -7.7%).
- Others include gaming headset vendor local reviews leader Yelp (YELP -6%), Turtle Beach (HEAR -19.5%), wireless charging tech developer Energous (WATT -14.2%), cloud HR software firm Paylocity (PCTY -7.3%), e-commerce software/services firm Shopify (SHOP -8.9%), e-commerce services firm ChannelAdvisor (ECOM -8.5%), mainframe/IT services provider Unisys (UIS -7%), and car-buying site TrueCar (TRUE -6.7%).
- Previously covered: Qorvo, Cimpress, Tableau, Multi-Fineline, LendingTree, Twitter
Dec. 22, 2015, 12:06 PM
- Vague M&A chatter is once more providing a lift to YELP. Priceline (NASDAQ:PCLN) has been mentioned as a suitor this time around.
- Volume is moderate thus far: 1.01M shares vs. a 3-month daily average of 2.85M. 9.5M shares (17% of the float) were shorted as of Nov. 30.
- The rumor comes less than a week after Yelp and Priceline-owned OpenTable confirmed they've ended a multi-year partnership. Yelp bought OpenTable rival SeatMe in 2013.
- 3 months ago: Yelp higher amid vague M&A chatter, call-buying
Nov. 20, 2015, 2:51 PM
- YELP has topped $30 for the first time since July without any major news crossing the wires. 4.7M shares have been traded, well above a 3-month daily average of 2.9M.
- The online local reviews leader. Shares rallied last week after IAC's bid for Angie's List fueled hopes Yelp would also get an offer, and added to their gains on an RBC upgrade. They're up 23% since the IAC offer was disclosed, but still down 44% YTD.
Nov. 13, 2015, 8:45 AM
- It's a risk-reward call, says RBC Capital's Mark Mahaney, upgrading YELP to Outperform with price target boosted to $42 from $34.
- The new price target is 62% above last night's close says Mahaney, but his valuation analysis suggests maybe a 20% downside and 100%+ upside potential using Yelp's historical forward multiples.
- Other factors: There's a realistic path to local ad revenue growth stabilization; strong and improving local solution; significant value to a strategic buyer; core play on mobile and native advertising growth.
- Shares +4.25% to $27 premarket
- Previously: Yelp up 2.5% after IAC offers to buy Angie's List (Nov. 11)
Nov. 11, 2015, 5:09 PM
- YELP has risen to $25.61 after hours after Barry Diller's InterActiveCorp offered to buy Angie's List (competes with IAC's HomeAdvisor platform) for roughly $512M in cash.
- Yelp, whose local services reviews act as a free alternative to Angie's reviews, reportedly hired Goldman earlier this year to help find a buyer, but was later reported to have abandoned its sale efforts. Shares trade 75% below a March 2014 high of $101.75.
Oct. 28, 2015, 4:08 PM
- Yelp (NYSE:YELP): Q3 EPS of $0.03 beats by $0.12.
- Revenue of $143.6M (+40.2% Y/Y) beats by $2.18M.
- Expects Q4 revenue of $149.5M-$154.5M vs. a $152.1M consensus.
- Shares +8.8% after hours.
Oct. 27, 2015, 11:28 AM
- A day after posting big gains, YELP is off sharply after online food ordering/delivery leader GrubHub (down 20.6%) missed Q3 estimates amid slowing transaction and food sale growth, and provided below-consensus Q4 revenue and adjusted EBITDA guidance.
- Yelp bought GrubHub rival Eat24 for $134M earlier this year, and undoubtedly counts many GrubHub-supporting restaurants as local ad clients. Yelp's Q3 report arrives tomorrow afternoon.
Oct. 26, 2015, 11:51 AM
- Online local services plays Yelp (YELP +8.2%) and Angie's List (ANGI +11%) are each up big on strong volume. Yelp has seen 3.2M shares traded vs. a 3-month daily average of 3.3M. Angie's has seen 1.02M traded vs. a 3-month daily average of 868K.
- No major news has arrived for either company. Some minor Yelp stories: Amazon has announced its Echo speaker/voice assistant now supports Yelp recommendations, and CNN has taken a look at the use of Yelp reviews by health officials to track food poisoning outbreaks.
- Angie's is now up 24% since posting mixed Q3 results and cutting its full-year guidance last Wednesday. Shares initially sold off following the numbers, but quickly staged a turnaround.
Oct. 12, 2015, 11:05 AM
- After opening down modestly, Yelp (YELP -9%) has steadily sold off in morning trading. 1.1M shares have been traded thus far; the 3-month daily average is 3.5M.
- No major new has hit the wires yet. The local reviews leader is now down 58% YTD, and trades for just 2x 2016E sales after backing out net cash.
- 8.7M shares (14% of the float) were shorted as of Sep. 15, down from 11.3M as of July 31.
Sep. 16, 2015, 11:33 AM
- Vague M&A rumors have given Yelp (YELP +2.3%) a boost on a quiet morning for the Nasdaq. Also helping: The purchase of 4K call option contracts sporting a $27 strike price and expiring next week.
- Bloomberg reported in May Yelp had hired Goldman to find a buyer, and in July that the company had decided against a sale for now.
Aug. 24, 2015, 12:45 PM
- Off nearly 9% in early trading, the Nasdaq is now down just 0.4%. Along the way, many tech names have not only erased their early losses, but are now posting major gains.
- Standouts include Micron (MU +5.3%), Skyworks (SWKS +6.7%), GoPro (GPRO +4.1%), Cree (CREE +6.7%), SunPower (SPWR +6.1%), Mobileye (MBLY +5.1%), Amkor (AMKR +9.1%), ExOne (XONE +4.7%), NXP (NXPI +3.7%), Yelp (YELP +4.3%), Cirrus Logic (CRUS +4.4%), and GoDaddy (GDDY +4.1%).
- See also: SolarCity, SunEdison
- Update (4:08PM ET): The Nasdaq went south again in afternoon trading, closeng down 3.8%. Skyworks, Cree, SunPower, Amkor, Mobileye, ExOne, and GoDaddy managed to stay in the green, while Micron, NXP, Yelp, GoPro, and Cirrus closed with modest losses.
Aug. 14, 2015, 12:42 PM
- Apex Capital's Gil Simon, making a contrarian bull case for YELP on CNBC: "We've seen this before. A lot of Internet companies have struggled as they've grown ... Facebook is a great example ... Netflix obviously had similar issues. And really, these companies have had crises of confidence on Wall Street, which have lasted for periods of time." (video)
- Apex notes only 4% of businesses on Yelp are currently paying the company, and argues (like Facebook/Netflix a few years ago) its growth story remains in its early stages. The defense of the local reviews leader comes two weeks after its shares plunged due to a Q2 EPS miss and soft guidance.
- Previously: Citron calls Yelp's selloff "a bit overdone"
Aug. 3, 2015, 12:00 PM
- Citron Research on Twitter: "$YELP seems a bit overdone. Citron long $YELP vs a core short position in $Z Stocks should meet somewhere in the middle in the next 12 mos."
- The remarks come 5 days after YELP lost over a quarter of its value post-earnings, with 7 firms downgrading the local reviews leader on account of its soft guidance and decision to pull out of the brand ad market.
- Previously: Citron predicts Zillow will fall below $40
- Update (12:50PM ET): Yelp has given back its gains. Shares are now down 0.8%.
Yelp, Inc. hosts an online database of user-generated reviews of local businesses. It provides reviews on local businesses, which include restaurants, boutiques and salons, dentists, mechanics and plumbers. The company provides multiple free and paid advertising solutions to engage with... More
Industry: Internet Information Providers
Country: United States
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