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's Upcoming Earnings Unlikely to Undo Twitter Damage

NEW YORK ( TheStreet) -- Investors banking on Yelp's  (YELP - Get Report) earnings to undo some of Twitter's (TWTR - Get Report) damage to the social networking sector may want to look elsewhere. 

Cashtaggers on say investors want more proof from social networking companies that real earnings will soon justify market caps. And they're unlikely to get that proof from Yelp as the company continues to spend aggressively to grow its business. Yelp currently trades at 152 times expected 2015 earnings.

Feels like $YELP is going to get crushed, not a lot of shorts are going to feel the pressure to cover after $TWTR now

- Jean Fonteneau (@JFinDallas) Apr. 30 at 09:44 AM

Analysts predict that Yelp will post a loss of 6 cents per share for the first three months of the year on $75.1 million in revenues, according to consensus estimates on Yahoo Finance.

Yelp fell 4.7% by 1:30 p.m. on the back of Twitter's disappointing quarterly report. Though Twitter's flat non-GAAP earnings beat expectations, investors were troubled by its slow user growth.

Some investors argue that Yelp should not have suffered so much from Twitter's problems. They said Twitter's user growth issue is specific to the micro-blogging site and has little relation to Yelp's relevance.

funny to see $YELP down 4% on $TWTR news.. time to buy?

- Mark Holder (@StoneFoxCapital) Apr. 30 at 09:45 AM

Certainly, the Yelp bears have been wrong before. Last quarter, Yelp met EPS expectations and beat on revenues. The stock closed up nearly 19% the following day. Some investors believe Yelp shares could rise 14% if it beats expectations tonight.

$YELP exacting price movement 14% after Earnings as per this website.

- Hiral Ghelani (@Hg5096) Apr. 30 at 11:59 AM

But others say there is simply too much risk to warrant buying in given the stock's downward trajectory in the past couple months. The stock has fallen nearly 40% since March 4 highs.

$YELP is pricing in a big options move, but oddly enough, I'm just not seeing good opportunities. Too much risk there. Moving on.

- Haki Hika (@hakihika) Apr. 30 at 12:01 PM

$YELP I think yelp investors are bullish on yelp into earnings but doesn't want to take on risk. don't blame them.

- Donny (@PowerUp) Apr. 30 at 10:27 AM  

At the time of publication the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

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
TWTR $25.75 0.00%
YELP $30.18 0.00%
AAPL $117.81 0.00%
FB $105.45 0.00%
GOOG $750.26 0.00%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs