Social Media: Yelping Momentum for Market

NEW YORK (TheStreet) - Over the weekend, we heard that Yahoo! (YHOO) has struck a deal with Yelp (YELP) to help bolster Yahoo's search results.

We know two key things: (1) Yelp keeps delivering, driven by its local focus, and (2) Yahoo needs to turn around its core business, as the Alibaba halo will soon be lifted-and as trends could be decelerating there. CEO Marissa Meyer wants to focus on building out Yahoo's key verticals with a focus on people, products, traffic and monetization.

Yelp, up 35% year to date (it's only been just over one month!) and the social media cohort has been leading the way this year, with the exception of Twitter, because of their embrace of social, mobile and cloud.

Let us count the ways:

Facebook (FB): Mobile crossed 50% of ad revenues, with mobile ad revenue crossing the $1 billion mark. Ad revenues accelerated for the sixth consecutive quarter, up 76% YoY vs up 66% last quarter. Key catalysts remain, including monetization of Instagram (where the teens are going! Remember, Facebook made this defensive acquisition for this reason), in-stream video ads, programmatic efforts including Facebook Exchange, and messenger. Facebook is up about 70% from its IPO debut of $38 in May 2012... and up 17% year to date as well... but its addressable market and monetization should lead it higher still.

LinkedIn (LNKD): Investors were initially disappointed by LinkedIn's guidance, but this is a case where the company is investing in sales and product development including expansion in areas like China. Given its earlier stage, investors haven't given as much credit to this one versus investments from Amazon as they have in the last couple of years, but they should. After all, revenue was up 57% to $1.53 billion in 2013 and at the end of the fourth quarter cumulative membership grew 37% YoY to 277 million members. Mobile continues to gain momentum, now 41% of overall unique visitors. And engagement is strong, led by the new skill endorsements on the LinkedIn platform, content from though leaders, better infrastructure support, and integration of Pulse and LinkedIn Today. The stock is up about 365% since its IPO price of $45 in May 2011. And the recent pullback offers a compelling entry point.

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