This looks like a nice short sqeeze today - shaking out the last remaining strong shorts. This may be the top.
There is huge buying right now on absolutely devastating news ... news that shareholders were told just a few weeks ago would not happen. Their biz model just fell apart, and its party like its 1999 again.
Pre-market support to make sure this thing does not tank ... got to rotate out the big boys first, then she can tank. This will be an intesting day. Will someone not play nice and try to exit without approval of the chaebol?
Right - a shareholder lawsuit may be in the works on this ... so, that makes it more probably that the MM's and long holders will support the stock to save a large lawsuit that the company cannot afford.
NFLX dropped $50 (from 380 to 330) on fears of this, and then it went up $100 after the CC when the numbers looked better than expected, and Hastings stated that this was not a concern ... Stock should take a big hit on this as those $50 concerns turned out to be real .... But analysts are already in damage control saying "we don;t know who really wins / loses in this" ... are you kidding me???? The chaebol is not yet ready to let this name go yet - too many big names in it that need to safely get out first.
I hear ya, but when the market is this insane for a sector (social media) - everything is an excuse to raise price targets and valuations ... not a good time to be short any of the names. Even though this social media bubble will pop someday with no notice .. and when it pops these sotcks will take 50-90% haircuts very quickly.
Do you think the early buying spree yesterday (300k shares in first 6 minutes) at the open was becuase someone knew about the Whatsapp deal ahead of time, and thought the announcement would come yesterday?
Gotta love the manipulation ... they want to keep it positive on Monday to set the tone for the week.
Its becuase there is very, very light volume the last 2 days. The momo push has finanly past for now. Might lead to some selling next week.
Yelp has exceed it fair value by 2.5x which is the point where momo stocks usually start to consolodate and then drop. (fair value at about $40, and it hit $100 this week in A/H)
S&P trades at 15.3x forward earnings and 16.9x trailing .. not sure where you get your numbers. 2014 earnings have already been dropped over 2% since the start of the year ... even with a slightly down S&P for the year, P/E has expanded as earnigns expectation are falling faster.
With max pain set at $90 for tomorrow - stock keeps bouncing off of $89 despite weakness developing. Money will pour in to keep at $90 through tomorrow closing to crush the large $90 put position, and then look for this stock to drop over the next 2 weeks back towards $80. If this stock breaks $89 look out, it could head to $85 by tomorrow.
Post Earnings, 2014 earnings estimate dropped from $0.17 to $0.01 (94% drop), FWD P/E now 8,950.
2015 earnings estimate dropped from $0.55 to $0.41 (25% drop), 2015 P/E now 218.
And the price is up more than 18% .... So, YELP has to spend much, much more than previously beleived to drive the revenue growth, but that is a good thing???
with 7.27M shorts as of 1/15, we are close to that trade volume today/last night. Momo up will be stopped with short ownership at normal levels now. Then stock will come back to where it should have ended up - around $80. Cramer forced the hsort covering and pushed the stock up over $10 on his comments this morning.
After a 20% move in past 2 months on the expectation of raised revenue.