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Yelp Inc. Message Board

  • mrvolatility mrvolatility Aug 4, 2013 8:23 AM Flag

    Cramer and Scott Ryan does not know the local advertising industry at all

    1. Professional writers and SEO companies are being PAID to write fake customer reviews on YELP and on thousands of local review sites.

    2. It took Yelp management to grow $250 million in 10 years and still without profit. That proves poor execution.

    3. 90% of Yelp total traffic came from AAPL or GOOG, therefore both AAPL and GOOG will not paid to acquire YELP or any company that feeds on AAPL and GOOG. not to mention paying hefty premium.

    3.5 once GOOG and AAPL get their act together and replicate what Yelp does, yelp will be crushed just like Google offers and LivingSocial has crushed groupon.

    4. Yelp's business and revenue model has extremely low barrier to entry, and huge competition. Thus explains why Yelp only grew $250 million in 10 years.

    5. Where are all the print yellowpages now? Virtually gone! Barely surviving trying to reinvent themselves in the digital/ mobile age. The biggest two around? AT&T interactive and Dex Media! What's their valuation and market cap? Exactly!

    6. Yelp does not have anything proprietary, if you truly know the online and mobile local advertising industry.

    Disclaimer: I have over $1 million shorting on Yelp at between 52.55 - 58.50. I short Yelp and will continue to short Yelp because I am truly an industry insider and know that all the hype, bubble, and fluff in Yelp will fade.
    Thus explains why Yelp insiders does not hold majority of their holdings and exercised options in Yelp. Enough said.

    Sentiment: Strong Sell

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    • I believe Crames does know the local advertising industry, but he pumping only the companies, who paid to Cramer and his criminals friends tons of money.

      Net revenue of Yelp was $55.0 million in the second quarter of 2013 – or on a yearly base 220 million. Only 220 million revenues by idiotic high 3,670 million market-cap are only a joke and a extreme overvalue with 16.7-times-revenues and only the work of manipulations of the incubators, who want to sell the 90% of their shares, because in the IPO was given only 10%.

      I believe, we see now the most criminal activities of the same incubators-robbers, who robbered the investors in the internet bubble in 1999/2000. Local Corp for example, who do similar like Yelp, has only 0.4-times revenues.

    • So with all that being said, I will take note and see. What is your take on Facebook at 38 and LNKD at 235?

      • 1 Reply to letsgotiffy
      • U can't compare YELP to FB and LNKD. FB is making billions of $$$, YELP is NOT. FB is highly profitable. YELP is NOT for the past 10 years. FB has fake and duplicate accounts while YELP has fake customer reviews. FB has more than 1 billion users, while YELP only has a few million APP users/ downloads.

        FB has much higher barrier to entry cause you won't see another company racking in billion users in the next 5 to 10 years. While Yelp has a very low barrier to entry. And base on YELP's past poor management execution, YELP will be crushed fairly soon just like Groupon.

        While both FB and YELP's transitional growth from desktop to mobile, and its ability to monetize those mobile traffic are highly noticeable. But YELP is not worthy of its current valuation on any measures. Dot bomb all over again.

        Additional insights about YELP can be found on the current SA article. This writer/ article seems to be more unbiased than that Scott Ryan doofus. "Tree in the forest my #$%$"

        http://seekingalpha.com/article/1602942-5-reasons-im-staying-away-from-yelp?source=yahoo

        Anyhow...FB and YELP is not a apple to apple comparison.

        Sentiment: Strong Sell

    • Great summary, mrvolatility. Let's keep this up so suckers of Cramer's d.c k will be enlightened. A tech bubble all over again if this is not being controlled or corrected.

    • Very good points. CEO and founder Jeremy Stoppelman and other sold a few days before earnings. They know better and see what is coming. I also have a big short position, will cover at $39.

      Sentiment: Strong Sell

 
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