I view this as great news for the company. They get plenty of cash for operating expenses. Remember, even though the shares are diluted, it's at a high price and the company is actually worth more due to the cash infusion. If this is the actual price, look for the stock to open low in the morning (62-64) and steadily rise throughout the day. Pandora recently went through the same situation of a secondary offering at 25, and the market reacted the following day by pushing it over 27.
Also, the most important number to take out of the earnings was forward guidance, which BEAT expectations. Revenue is more important than EPS when talking about early growth stocks. Their mobile numbers were very good too.
With the massive short float, this goes back to 70+ in a week.
Sentiment: Strong Buy
I've only recently started following YELP and was curious to see how it would react today due to the earnings, offering, etc. I've got to say CC was pretty spot on with his prediction for how the stock would react today. Kudos
DO NOT brush it off.No one in rt. mind after missing will dilute other like LNKD,ZINGA,may be FB next in line.Soon other will dump for Twitter IPO to raise cash.Dump in AM still there is lots of value at hand.I am first in AM to dumping 20,000 Shrs at market or will sell on (ECN) over seas exchange 5 A.M. before it derails on regular hr.Holding for what ? There lot better & safe place to trade,invest or park.
Hope this NOT not sign of social media bubble?
That offer pricing number is accurate. Conference call stated offer was for ~3.7M shares to raise ~$250M. That comes out to $67.56/share. Internet-based business Pandora is likely a good example, and their secondary offering of $25/shr priced on Sept. 18th was less than 1% below the previous day's closing price of $25.19. Especially interesting to note that share price also closed $27.35 the following day, up over 9% from the offering price. Since number of shares offered is about the same as the volume traded in a single day, and since revenue and revenue estimates for the year are up, it seems to bode well for Yelp back up over $70 relatively soon.
o brother... where to start.. why are you comparing with pandora? pandora has forward p/e of 100 while yelp is 250. Pandora rose when the whole marker was breaking up 2 weeks ago and been flat the last few days. why do you think yelp belongs to a group of stocks that can only go up every day all the while losing money and diluting shares? do you know that they have been diluting in the previous quarter too? why do you think that big short float is a guarantee that this goes up? It's like saying that because there is even bigger long float the stock will go down. sizable short float can amplify breaking through, but there should be a conviction break through to begin with. lnkd, which is much better company and actually beat went down close to 4% ah, but this pos should make new highs?
IMO your number estimation from the price expectations are WAY OVERSTATED--because the additional issuance of securities will be fully dilutive added to the poor financial results will weigh heavily on this stock----check the information the majority of the senior management have sold in excess of 14 million shares in the last 4-5 months
You will be lucky to see $ 60 as the high price for the next 4-5 months----This Dog has fleas and IMO the expectations to produce future non-profitable activities is Bull----expect to see the general market to start a 3-4% reduction in next 4-5 weeks and then a year end rally--YELP will get creamed
Sentiment: Strong Sell
Check the AP article from 6:09pm. They stated 67-68, I didn't make it up. Furthermore, secondaries of companies performing very well are never priced that far below the previous close. Pandora and Zillow are some examples.
Poor financial results? I don't think you know how to read CC transcripts...
Management selling shares is perfectly normal. Do you expect them to never sell a single share and hold them to the grave?