Who Doesn't Love Yelp?

This article originally appeared on RealMoney.com on Sept. 2, 2014 at 3:10 p.m. To read more content like this AND see inside Jim Cramer's multi-million dollar portfolio for FREE... Click Here NOW.

What the heck is going on with Yelp (YELP) ? It's become the company that doesn't go down on good or bad days.

I have a theory: you simply have to go back to the day it reported at the end of July to recognize what happened here. First, the stock ran into the quarter, which was a huge upside surprise with 61% growth year over year and a 4-cent-per-share profit. I don't know a soul who was looking for a profit.

But the stock had run into the quarter, so initially the stock just went up about a buck. And then it came out that there was a slowdown in what's known at the active local business account growth. No matter that active local ad growth ACCELERATED, meaning that sales people were beginning to go after more elephant accounts instead of settling for lots of little ones, this metric became the reason why this stock got hammered and gave up all of its gains leading up to the quarter and then some.

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For a week after that all I heard was that Yelp was done, finished, stick a fork in it. The talk astonished me because Yelp is one of a handful of apps that's MUCH better on your cellphone than your desktop and Yelp can actually invert the pricing structure and charge more than it does.

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