Coverage Round-up: Yelp IPO
Wall Street seems to have expected a pop for Yelp on IPO today, but it has been better than expected with shares rising more than 70% so far today. The stock opened at $22, then sold for as high as $26. That will put at least $107M in Yelp’s bank account while valuing the site at nearly $900M.
Positive takes on Yelp center on its potential: “While it is still reasonably small from a revenue standpoint, the company is still in the relatively early stages of monetization — a large percentage of its revenue comes from its 20 oldest markets, so it should be able to continue to grow strongly as it drives monetization in its other 51 markets,” research analyst Nick Einhorn, of IPO investment advisory firm Renaissance Capital, told the Associated Press.
Negative takes focus on competition. Other sites are encroaching on its main focus, with Google buying Zagat last year to add consumer reviews and Foursquare offering former visitors’ thoughts in its location-based check-in service. “My primary concern is the current competition and the new players that will enter this space,” Scott Sweet, a managing partner of IPOboutique.com, told the New York Times.
BusinessWeek wants us to get to know CEO Jeremy Stopplemen, hitting the typical talking points: Paypal mafia, nerdy, introverted, tough negotiator, walked away from $1B offer from Yahoo.
A good number of posts highlight that Yelp is not yet profitable.
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