This is older but the points are still true... Good luck getting the link right. Or just Google, "picking Yelps future payments partner."
pymnts ^ c*o*m / commentary / picking-yelp-s-future-payments-partner
#1: I'm not in Yelp because of potential M&A though I think that does help maintain a stock's momentum and allure. I think it's a very real possibility, but it alone is not what moves the stock day to day.
#2: No barrier to entry at all? Yelp was founded in 2004, has significant expenditures, and over this time has managed to become a household name which is often used in verb form "let's Yelp it." That's extremely powerful branding that doesn't come overnight. They have a HUMAN sales force that's been trained and perfected over many years to sell their services.
#3: I think the cost would be too high for Yahoo though I don't doubt Marissa Mayer is interested. The fact she cut a search deal recently with Yelp suggests that's as far as she'll go.
#4: eBay has MANY online properties beyond their auction business. You need to read up on your eBay. eBay is THE pioneer in the review space. Reviews are what drive their auction site. They may even be interested in using Yelp's review algorithm to increase trust in their own reviews. PayPal (eBay-owned) can also be layered over Yelp and SeatMe for integrated payments which will further decrease Yelp expenses. Merged eBay/Yelp profiles could bring more foot traffic to existing eBay sellers and they could probably do some bundled advertising / enhanced listing deals as well. With market cap of $73 billion, eBay is also far more likely than Yahoo to seal such a deal.
SEC filings are law-mandated disclosures. You either say everything now lest you be accountable later for not disclosing fully. Certainly Google can be a threat. But they either have chosen not to be or have not been successful at doing so. I'm not going to trade based on what-ifs. Google has been working on Google+ for a long time and it really has not amounted to much. Nothing they do is going to work overnight either. So there's really nothing in the near term competitively-speaking that is much of a threat to Yelp.
Anything's possible, though I think for the sake of Yelp's future, it would be better if it were a Google or eBay. Unless MSFT's new CEO changes things, getting bought by MSFT would probably drive it into the ground like everything else MSFT gets its hands on.
do you have any idea what you're talking about? how often are tech stocks bought because they are accretive to earnings? Need I remind you of Skype (bought by eBay, then MSFT) or WhatsApp (bought by Facebook)? These are just a few examples. The big $$ are spent on eyeballs and traffic. I don't understand and I don't need to. But those are the facts. Time and again, companies think they can buy eyeballs now and turn it into cash later. Facebook is probably the only company that's been truly successful at it. Yelp is not just eyeballs though. They have a sales team and are expanding globally. There's a bit more to it.
look, i'm positive on Yelp in the coming months, but nobody is going to pay a 100% premium. Maybe 40%. And it's more likely to be eBay than MSFT. Or Google. eBay seems like a better fit though.
You keep harping on Google. I'm going to repeat again. Google is not currently competition for Yelp. sure they have some reviews on their site, but it is not managed and there is no sales team. The only thing Google sells directly is Adwords which is irrespective of reviews. People click on your ads based on their perception of relevancy. The reviews are part of Google Maps, a completely separate product.
I used to think the way you think, but the reason Yelp has been successful is because Google has completely neglected the review space. In fact it's gotten worse. I know - I have a business and Google's review process has just gotten clunkier and less used. I had 30 reviews going into 2013 and maybe 3 afterwards. All the older reviews now say anonymous Google user in stead of the name they selected. It may be that Google was holding out hope of buying into the space (what company i won't speculate) and didn't want to invest too much on reviews. Or maybe they thought the relevancy model of Adwords optimizes ads and brings more clicks than reviews will. The fact is Google is not currently a direct competitor. It's a different product.
As far as M&A, I think eBay would be a top contender. Of course, there could be foreign players too, but of the big names, my bets would probably be on Google or eBay if that were to happen.
there's no bad news coming out of Yelp. and Russia... well I'm done worrying about geopolitical news. the US has been at war for years and it hasn't crushed the markets. so russia isn't going to collapse the markets either. nobody is pulling out their nukes just yet. maybe when the US is finally forced to go into Iran there will be some issues. every time i allowed geopolitical news to get in the way of my trading, i've been burned. things don't move as fast as the news wants you to think they do. reality is not a thriller movie or apocalypse. it moves slow.
relax. it will go back up. just give it a few days. it'll be approaching $110 in a month. a week or two and it'll be back in the upper 90s.
this was a standard retracement. snice valuations moved a bit fast, there was an equal retracement. but realize this is now moving toward a new high of $110 and it'll be there within a month. so be careful.
looks like 85.32 was a bottom. bounced off twice. get out quick.
that's a fluke. but you'll be repeating that phrase a lot if you continue shorting here. it's gone from 101.75 to 85. the correction is done. it will continue advancing now beyond its high of last week. you've been warned.
it just fell from $101.75 to $85 in a week and you're still hoping for more. that's just plain stupid. take your gains buy the other direction. you're going to get clobbered if you hold a short or put through September.
you realize those are 1 year targets, right? the funny thing here is that Yelp will reach $115 far before that. Probably in the next month. Maybe two.
sorry my friend. you made a good call on the short, but it was for the wrong reasons. the market corrected. Yelp needed to correct. it bounced off support on a trendline stretching back over a month and a half. keep playing it, but shorting is not the right move now. remember also, there's a Fed meeting next week also. there's always a catalyst around the corner. so long as Ukraine remains stable, the technicals will be right.
i saw the writing on the wall a week ago. i saw it break down through support, but didn't want to miss out on potential market exuberance so i stuck with it. the trend does look up now. my call is a few months out and i'm not on margin, so i'm not going to get all worried here.
if you look at the period between Jan 21 - Feb 5 you will see it took 1 week to reach a bottom, and again, one more week to continue its drive higher, followed by a surge after earnings. so we may not have that surge, but the trend is now up.
this was a technical retracement. it wouldn't have extended this far otherwise. if i were you i'd watch out as it's going up from here. and higher than the last high.
it just touched the bottom of a trendline started on January 29, followed by another touchdown on February 5. After this move, it's now ready to move significantly higher over the coming months. i can't time it, but if it follows the trendlines exactly, we're headed for $110 in the coming weeks. The longer it takes, the higher that upper band will be when it gets there.
it would've been nice to get in lower and not before this down move, but i'll be patient. if there's one rule you follow, even if you take on risky positions, it is DON'T EVER BUY ON MARGIN! EVERRR!!! that's the only way to allow your trades to play out and not be forced to get out early on days like these. margin is the devil. remember that.
it will be back over $100, just as the dow will make another stab at an all-time high in the next two months. these heavy volume drops are simply momentary fear and will shake out the weak hands. there will be another run up. be warned.