YELP
Yelp Inc
TMT
06/16/2015
Presented
| Date | 06/10/2015 |
| Price | $43.54 |
| Market Cap | N/A |
| Ent Value | $2.93B |
| P/E Ratio | 89x |
| Book Value | $8.80 |
| Div Yield | N/A |
| Shares O/S | 74.81M |
| Ave Daily Vol | 4,140,000 |
| Short Int | 11.05% |
Current
| Price | $34.90 |
| Market Cap | $2.34B |
| Yelp Inc. operates a platform that connects people with local businesses in the United States. Its platform covers various local business categories, including restaurants, shopping, beauty and fitness, arts, entertainment and events, home and local services, health, nightlife, travel and hotel, auto, and others categories. The company provides local advertising services, including free and paid business listing services to businesses of various sizes, as well as enable businesses to deliver targeted search advertising to large local audiences through its Website and mobile app. It also offers brand advertising services comprising advertising solutions for national brands in the food and restaurant, automobile, financial services, logistics, consumer goods, and health and fitness industries that want to improve their local presence in the form of display advertisements and brand sponsorships. In addition, the company provides other services, including Yelp platform, which allows consumers to transact directly on Yelp; Yelp deals that allows local business owners to create promotional discounted deals for their products and services; and gift certificates products for local business owners to sell full-price gift certificates directly to customers. It serves customers in Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, the Czech Republic, Denmark, Finland, France, Germany, Hong Kong, Ireland, Italy, Japan, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, Singapore, Spain, Sweden, Switzerland, Turkey, the United Kingdom, and the United States. It has a strategic partnership with YP to display YP business owner profile data on company’s platform. The company was founded in 2004 and is headquartered in San Francisco, California. |
Publicly traded companies mentioned herein: Aol Inc (AOL), CBS Corporation (CBS), Facebook Inc (FB), Google Inc (GOOG), Pandora Media Inc (P), TripAdvisor Inc (TRIP), Verizon Communications Inc (VZ), Yelp Inc (YELP)
Highlights
The presenter is bearish on the outlook for Yelp, and suggested expressing the view through puts to avoid M&A risk. Reasons to be bearish include: Yelp’s user growth has “hit a brick wall” with monthly unique visitor growth dropping 3% y-o-y this past quarter, advertiser churn is extremely high (the presenter said ~70% terminate after one year), and its monetization strategy and credibility of reviews have both been questioned.
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