***** Yelp, Inc. *****
***** Yelp, Inc. *****
Got an interesting “stock play” for you guys…Yelp, Inc. (NASDAQ: YELP—B $20.00–A $20.01)
I’m kinda hoping that you guys know what YELP is!
In a nutshell for those who don’t, Yelp, Inc. owns/operates Yelp.com. (www.yelp.com).
Yelp.com is a website where individuals can write–or–read reviews/comments about all kinds of businesses. In addition to reviews, there are various advertisements/deal-coupons.
Just so you know, I am a regular-Yelp reader…The site has turned me onto some really great restaurants. I also “compare” my restaurant reviews to those of Yelp “reviewers.” By the way, some of those guys really know their stuff.
Yelp, Inc. went public on March 2, 2012 at $15 a share. Since that date its trading range has been $19.36-$31.96. Right now as I type, it’s trading at 20 bucks a share.
Now nothing for nothing, Yelp isn’t the only “site” that has reviews-etc. There are guys like OpenTable, Angie’s List, TripAdvisor–just to name a few. There are also tons and I do mean tons of sites that do “deal” coupons like Groupon and Living Social. The point here, this internet review/coupon/advertising business…is relatively new and is loaded with players. There is absolutely no doubt in my mind, that this “business” has way too many players–is way too crowded and in the coming year or so, will see many of these web-companies “fail.” Let’s get real, how many ” discounted massages” are you gonna buy online? So…
Now, you got to do your own DUE DILIGENCE…but my research “tells” me, that YELP has a real shot at becoming THE dominant player (or at least one of the dominant players) in this particular business segment. I think that the Company’s potential is HUGE. From what I can tell, the public markets haven’t really been paying attention to YELP…it seems that giants like Groupon and Living Social (which is partly owned by Amazon) garner most of the pr–negative/positive. Yelp, seems to be “treated” like a step-child.
Stock research is a strange-animal. The same information may seem positive to me, but negative to you. All I can tell you on the research-front is that in my “travels” I talk to a ton of people—and I’M telling you, that I have found that the population using YELP’s reviews is GIGANTIC. Now so you appreciate this “thing”—reading a review on YELP and YELP generating revenue from your “visit” are two totally different things…and I do mean two totally different things. My research tells me, that YELP’s management is smart enough, nimble enough, clever enough, to convert your eyeballs into hard-cash. Call it a gut feeling, but I’m of the opinion, that the “20 year olds of this world” unlike many of us old farts who took typing classes in junior high school—will eventually “pick” YELP as their favorite. I know it’s a big call, but that’s what I think! When the “collapse” comes to the online coupon business, look for massive corporate failures and consolidations. The bet here, YELP will be the winner, not Groupon, not Social Living, not OpenTable.
Like I said a few seconds ago, MY (operative word here MY) research tells me, that YELP’s stock is going to be a big winner.
If this type of “stuff” is your game, do some homework and see–if you see the “potential” that I do.
By the way, I currently have no Yelp, Inc. position long/or short…and have no intention of taking one druing the next 72 hours.