Why Yelp Shares Soared

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of social reviewer Yelp (NYSE: YELP  ) soared this morning by 15% after the company announced an acquisition and preliminary earnings. The company has since given up some of those gains.

So what: Revenue should be about $36.4 million, with adjusted EBITDA of $2.2 million. Both figures top the guidance that the company previously provided in August. Yelp's net loss for the quarter should be $2 million. Full financial results will be released on Nov. 1, at which time the company will also provide additional forward-looking guidance.

Now what: Yelp also announced that it has acquired Qype, the largest local-review site in Europe, to help spur the company's international expansion. Qype currently has about 2 million reviews on its site and sees 15 million unique visitors monthly across 13 different countries. The total purchase price was roughly $50 million and was comprised of cash and 970,000 shares of stock.

Interested in more info on Yelp? Add it to your watchlist by clicking here.

Evan Niu, CFA, has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2073594, ~/Articles/ArticleHandler.aspx, 12/21/2014 2:34:44 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement