This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stock Under $10 that he thinks could potentially double or triple in the next 6 to 12-months. See what he's trading today with a 14-day FREE pass.

Cramer: Two Possible Fates for Yelp

Editor's Note: This article was originally published at 7:07 a.m. EDT on Real Money on Aug. 1. To see Jim Cramer's latest commentary as it's published, sign up for a free trial of Real Money.

NEW YORK (Real Money) -- Who has mastered mobile? Who can make money in mobile advertising and not be crushed by programmatic brutalization?

Facebook (FB) can, and now we discover that Yelp (YELP) can, too. In fact, Yelp is thriving, with second-quarter sales up 69% on special initiatives that actually make mobile much better than any other device for the review-and-spend chain.

OK, review-and-spend is my term, but that's what you do on Yelp. You go, you find out what people say, you read the ads and you go spend money at that advertiser. From the looks of things, with huge retention and 62% growth expected, the site's a winner for both advertisers and for Yelp.

Not only that, but Yelp's introducing a "nearby" function that allows people to assess where to go on the fly in a way that sounds eerily like Facebook's graphical initiative where you can tap into what individuals you know like about certain places and things.

Mobile, social and cloud are the holy trinity of tech. Only a handful of companies have offerings that address the trinity, the foremost of which is Salesforce.com (CRM), which is a Yelp partner helping to organize the 100 million visitors to the site.

This Yelp story's pretty amazing. It started with two employees in 2004 and an office in San Francisco to sell its service to small- and medium-size businesses in the area. It then rolled out to Chicago and then went national and is now international. It was a considered rollout, five new cities in the second year, then seven and they are now in 90 cities and 19 countries around the world. The combination of having fresh reviews -- 30 million to date -- and the sales force to hit up these companies that are being reviewed is a virtuous circle that works incredibly well. The reviewers create the content, not Yelp, and the advertisers pay Yelp to follow up on the leads.

Yelp's winning in several ways. First, as more and more reviewers come on, it becomes incredibly important for the company being reviewed to have a presence on Yelp. Second, it is an easy sales call for Yelp and one that many advertising candidates feel they now have to do, no different from the first-generation product that Yelp improves on so markedly, the Yellow Pages. Finally, Yelp has morphed into the mobile Yellow Pages, something that represents a spectacular Web and mobile innovation, kind of the poster boy for this activity because, alas, think of it, can you imagine carrying around the old Yellow Pages? Can you imagine how targeted this advertising method is vs. placing an ad in the Yellow Pages because you are mining the traffic you already know is coming to your company.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • 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 Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
DOW 17,083.80 -2.83 -0.02%
S&P 500 1,987.98 +0.97 0.05%
NASDAQ 4,472.1080 -1.5890 -0.04%

Our Tweets

Brokerage Partners

Top Rated Stocks Top Rated Funds Top Rated ETFs