At nearly $900 million, Yelp will start trading at ten times revenue. Conversely, Google trades at six times trailing-twelve-month revenue and is highly profitable. Even Groupon (GRPN), which came under criticism for its accounting-methods and low barrier to entry, trades at six times trailing-twelve-month revenue. "Yelp is selling at the highest multiple to sales to its competitors, which is a serious metric that has to be looked at," Sweet said on the phone. "Yelp is selling at nearly double what Google is."
Yelp was competing with Groupon in the "daily-deals" space, but left that market in 2011, along with Facebook, as revenue growth slowed.
Yelp priced its IPO last night at $15 per share, above the expected $12-$14 range, indicating the high interest in the offering. 7.15 million shares will be sold in the offering, raising $107 million. It will trade under the ticker symbol "YELP" on the New York Stock Exchange.Yelp shares opened for trade at $22.00 per share, and are currently trading at $24.64, up 64.27% from their IPO price.
--Written by Chris Ciaccia in New York >To follow the writer on Twitter, go to http://twitter.com/commodity_bull. >To submit a news tip, send an email to: firstname.lastname@example.org
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV