How can you expected YELP to stay in business when their quarerly losses exceeds their revenues?
How, you dilute with a secondary.
YELP needed a secondary just to stay in business and pay its operating bills, all the while insiders are dumping shares as fast as they can. The good news, the dilution will mask just how bad their quarterly Loss Per Share is running.
you are correct that this, and all other social\hyped stocks will end like the '99 bubble. But remember they ran that bubble into the new year before the exit started. Same here. The hedge funds that are swapping these stocks around between themselves will do so through yearend. push off their tax bill until next year.
next year will see everyone of this years momo junk stocks get cut by 50% of this years high. YELP, for real? 250million in rev's and 5billoin mkt cap??? using the same '99 metric of "views". Has anyone really ever used YELP? I ordered a pizza the other night, the order went through and Dominos had my pizza. I guess life works without YELP?
So, wait until next year for the massive short profits on this years #$%$ paper