Why Yelp, Inc. 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 online review provider Yelp, Inc.  (NYSE: YELP  ) surged 20% today after its quarterly results and outlook topped Wall Street expectations.

So what: The stock has skyrocketed over the past year on a string of better-than-expected quarters, and yesterday's Q4 results -- net loss narrowed to $2.1 million vs. $5.3 million in the year-ago period on a revenue surge of 72% -- coupled with upbeat guidance only reinforces that trend. In fact, monthly unique visitors surged 39% year over year to 120 million with about 53 million of them coming from mobile devices, giving analysts plenty of good vibes over Yelp's monetization prospects going forward.

Now what: Management now sees full-year 2014 revenue of $353 million-$358 million, nicely ahead of Wall Street's view of $347.8 million. "We enhanced the mobile experience, brought on thousands of new local business customers and completed the integration of Qype, which accelerated our European expansion," CEO Jeremy Stoppelman said of 2013. "Looking to 2014, we will continue our geographic expansion, add new products and programs for our community of writers and find even more ways to drive value to business owners." Of course, with the stock now up a staggering 300% over the past year and trading at a 20-plus price-to-sales ratio, much of that bullishness might already be baked into the price.

More great ways to go for growth
They said it couldn't be done. But David Gardner has proved them wrong time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.


Read/Post Comments (0) | Recommend This Article (2)

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.

DocumentId: 2827080, ~/Articles/ArticleHandler.aspx, 4/20/2014 12:24:08 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