NEW YORK (TheStreet) --Shares of Yelp (YELP) were soaring 9.94% to $35.71 on heavy trading volume early Wednesday afternoon as the online review site posted strong financial results for the 2016 third quarter.
Before Wednesday's market open Yelp posted earnings of 22 cents per share beating expectations of 3 cents per share.
Revenue increased 30% year-over-year to $186.2 million. Projections were for $182.9 million, according to FactSet.
"We like Yelp, it's been our number one pick in the small-cap space," RBC Capital Markets lead tech analyst Mark Mahaney said during Wednesday's "Fast Money Halftime Report" on CNBC.
"Some of the best performers have gone from large-caps last year to the small-caps this year. Yelp is one of them," he added.
Along with Yelp's beat, the company also provided further profit streams including "transactions" which are adding to the overall revenue of the company," he noted.
"This story is getting stronger; street estimates need to go up; the stock goes higher. I like Yelp right here," Mahaney stated.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "sell" with a ratings score of D.
Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity.