NEW YORK (
) -- When you're right, you're right, and
Shares of the San Francisco-based local business reviewer are rising another 12.62%, trading at $58.00. This follows the huge move the
as institutional investors piled into the name after strong second-quarter earnings.
Like so many Internet-related names recently, Yelp is benefiting from the rise of the mobile Internet, and is seeing tremendous demand for the stock. With metrics like average monthly visitors rising 38% to 108 million, and active local business accounts soaring 62% year-over-year to 51,400 and second-quarter revenue rising 69% year-over-year to $55 million, it's not too hard to see why. These types of businesses don't come around very often, and investors are willing to pay big premiums to own the ones that do.
Given the 206% move in shares year to date, it wouldn't shock me to see investors take a little off the table, booking some profits. It also wouldn't surprise me to see the company take advantage of the run up in its equity, and raise some additional capital to further build out the business.
The company recently announced a delivery service, known as
, and recently acquired SeatMe, a web and iPad-app based reservation solution that many think could be used to take on
With price appreciation like this and investors seemingly showing no signs of stopping, it's Yelp's world right now, and we're just living in it.
Written by Chris Ciaccia in New York