This is a remarkably powerful and robust concept and it is working well even as small business, the lifeblood of hiring in this country, responsible for more than 60% of the jobs created, remains in the doldrums. If you get new business formation, Yelp should be able to leverage its model to huge success and profitability. It is still losing money with a penny-per-share loss in last night's quarter because of its aggressive expansion, although losing much less than the 4-cent loss analysts expected.
It's a less-than-$3 billion company and it would be the platform Apple needs to protect its flank from Facebook and Google (GOOG). That's why I wonder whether Yelp will ever get a chance to show profitability. It simply must be bought by a company that needs this Yellow Pages of the Future, and Apple makes the most sense.
Two ways to win: oxygenated growth or takeover. That's the Yelp story after this remarkably robust quarter.Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long FB and AAPL.