At nearly $900 million, Yelp will start trading at ten times revenue. Conversely, Google trades at six times trailing-twelve-month revenue and is highly profitable. Even Groupon ( GRPN), which came under criticism for its accounting-methods and low barrier to entry, trades at six times trailing-twelve-month revenue. "Yelp is selling at the highest multiple to sales to its competitors, which is a serious metric that has to be looked at," Sweet said on the phone. "Yelp is selling at nearly double what Google is."

Yelp was competing with Groupon in the "daily-deals" space, but left that market in 2011, along with Facebook, as revenue growth slowed.

Yelp priced its IPO last night at $15 per share, above the expected $12-$14 range, indicating the high interest in the offering. 7.15 million shares will be sold in the offering, raising $107 million. It will trade under the ticker symbol "YELP" on the New York Stock Exchange.

Yelp shares opened for trade at $22.00 per share, and are currently trading at $24.64, up 64.27% from their IPO price.

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-- Written by Chris Ciaccia in New York

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