This Day On The Street
Continue to site
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

Yelp Soars, Facebook Climbs: Tech's Big Winners (Update 1)

(Updates from 11:54 a.m. ET with closing information.)

NEW YORK ( TheStreet) -- Yelp (YELP - Get Report) shares soared Thursday, rising 21.96% to $50.98 after its quarterly results and outlook beat Wall Street estimates.

"We had a great second quarter with strong execution in all areas of our business as the Yelp brand becomes increasingly prevalent around the world," said CEO Jeremy Stoppelman.

Revenues rose 68% to $55 million, topping the $53.3 million estimate from analysts according to Thomson Reuters. Net losses for the quarter were $0.9 million, or 1 cent per share, down from $2 million, or 3 cents per share, during the same quarter last year, and well below analysts' estimate of a loss of 4 cents per share. The website, which reviews local businesses, is planning to expand into restaurant bookings, event planning, and payments.

For the third quarter, Yelp expects revenue between $58 million and $59 million, with adjusted EBITDA between $7.5 million and $8 million. Analysts surveyed were looking for $57 million. For fiscal 2013, Yelp anticipates revenue will be between $222 million and $224 million, with adjusted EBIDTA between $27 million and $28 million.

Shares of Micron Technology (MU - Get Report) rose 1.74% to $13.47 following the completion of its $2 billion acquisition of Elpida Memory.

Elpida, the Japan-based manufacturer of computer memory chips, filed for bankruptcy protection in February 2012; its $5.6 billion in debt made it the biggest ever bankruptcy by a Japanese manufacturer. The deal will increase Micron's current manufacturing capacity by approximately 45%.

"We are pleased to bring together Elpida with Micron to form the industry's leading pure-play memory company," said Micro CEO Mark Durcan in a statement. "This combination will result in enhanced R&D and manufacturing scale, significant cost and production synergies and a stronger memory product portfolio to provide solutions to our customers."

SanDisk (SNDK - Get Report) shares rose 4.28% to $57.48 in Thursday trading after the company's announcement Wednesday evening that it would offer its first dividend payment late this month and added $2.5 billion in new share buybacks.

The 22.5 cent dividend per share per quarter will be paid on August 30 to holders of record as of August 12. Based on Wednesday's close of $55.12, the payout represents a 1.6% yield.

Of the $2.5 billion addition to the buybacks, $1 billion will be purchased through an accelerated share repurchase during the current quarter with an unnamed financial institution.

"Today's announcements underscore our confidence in the company's business and our commitment to share our success with our shareholders," said SanDisk CEO Sanjay Mehrotra. "The dividend provides immediate and ongoing returns to our shareholders, and we believe that utilizing our cash for share repurchases will add significantly to long-term shareholder value."

Facebook's (FB - Get Report) shares continued to climb, rising 3.40% to $38.05, exceeding its $38 price during its disastrous IPO in May 2012 for the first time.

The price increase follows two important announcements from the Menlo Park, Calif.-based social network. On July 30, Facebook announced in a company blog post that it would begin promoting and publishing its own mobile games.

"We are invested in the success of these games, and in exchange for a revenue share, we will be collaborating deeply with developers in our program by helping them attract high-quality, long-term players for their games," Facebook wrote in the blog post.

Earlier this month, the company posted exceptionally strong earnings results led by strength in its mobile advertising segment.

Closing prices: YELP closed 23.2% higher at $51.50, MU rose 2.5% to $13.58, SNDK was up 6% to $58.42 and FB ended the day up 1.9% to $37.49.

-- Written by Laura Berman in New York

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
FB $117.81 -0.21%
MU $10.06 0.60%
SNDK $74.69 -0.37%
YELP $21.42 -1.02%
AAPL $93.24 -0.41%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs