NEW YORK (TheStreet) -- Yelp
(YELP) stock is spiking on Thursday after the company reported a narrower-than-expected net loss and double-digit sales growth in its first quarter.
By market open, shares had popped 8.1% to $63.07.
In its March-ending quarter, the online reviews aggregator narrowed its net loss to $2.6 million, or 4 cents a share, half the losses of the quarter a year earlier. Revenue surged 66% to $76.4 million.
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Analysts surveyed by Thomson Reuters
had forecast a net loss of 6 cents a share and revenue of $75.06 million.
Management guided for full-year revenue between $363 million and $367 million, representing 57% growth. Analysts expected full-year sales of $358.91 million.
Also See: Why Yelp Is Surging: What Wall Street Thinks
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TheStreet Ratings team rates YELP INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate YELP INC (YELP) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The area that we feel has been the company's primary weakness has been its disappointing return on equity."
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