2 possible fates for Yelp
Now that we know the review site can make money in mobile, there are two ways this story could play out -- and both are winners.
Facebook (FB) can, and now we discover that Yelp (YELP) can, too. In fact, Yelp is thriving, with second-quarter sales up 69% on special initiatives that actually make mobile much better than any other device for the review-and-spend chain.
OK, review-and-spend is my term, but that's what you do on Yelp. You go, you find out what people say, you read the ads and you go spend money at that advertiser. From the looks of things, with huge retention and 62% growth expected, the site's a winner for both advertisers and for Yelp.
Not only that, but Yelp's introducing a "nearby" function that allows people to assess where to go on the fly in a way that sounds eerily like Facebook's graphical initiative where you can tap into what individuals you know like about certain places and things.
Mobile, social and cloud are the holy trinity of tech. Only a handful of companies have offerings that address the trinity, the foremost of which is Salesforce.com (CRM), which is a Yelp partner helping to organize the 100 million visitors to the site.
This Yelp story's pretty amazing. It started with two employees at 2004 and an office in San Francisco to sell its service to small- and medium-size businesses in the area. It then rolled out to Chicago and then went national and is now international. It was a considered rollout, five new cities in the second year, then seven and they are now in 90 cities and 19 countries around the world. The combination of having fresh reviews -- 30 million to date -- and the sales force to hit up these companies that are being reviewed is a virtuous circle that works incredibly well. The reviewers create the content, not Yelp, and the advertisers pay Yelp to follow up on the leads.
Yelp's winning in several ways. First, as more and more reviewers come on it becomes incredibly important for the company being reviewed to have a presence on Yelp. Second, it is an easy sales call for Yelp and one that many advertising candidates feel they now have to do, no different from the first-generation product that Yelp improves on so markedly, the Yellow Pages. Finally, Yelp has morphed into the mobile Yellow Pages, something that represents a spectacular Web and mobile innovation, kind of the poster boy for this activity because, alas, think of it, can you imagine carrying around the old Yellow Pages? Can you imagine how targeted this advertising method is vs. placing an ad in the Yellow Pages because you are mining the traffic you already know is coming to your company.
This is a remarkably powerful and robust concept and it is working well even as small business, the lifeblood of hiring in this country, responsible for more than 60% of the jobs created, remains in the doldrums. If you get new business formation, Yelp should be able to leverage its model to huge success and profitability. It is still losing money with a penny-per-share loss in last night's quarter because of its aggressive expansion, although losing much less than the 4-cent loss analysts expected.
But here's my question about Yelp. It has a partnership with Apple (AAPL) that works. Apple needs a better social and mobile strategy. It would cost Apple a pittance to buy Yelp. It's a less-than-$3 billion company and it would be the platform Apple needs to protect its flank from Facebook and Google (GOOG). That's why I wonder if Yelp will ever get a chance to show profitability. It simply must be bought by a company that needs this Yellow Pages of the Future and Apple makes the most sense.
Two ways to win: oxygenated growth or takeover. That's the Yelp story after this remarkably robust quarter.
Jim Cramer is a co-founder of TheStreet and contributes daily market commentary to the financial news network's sites. Follow his trades for Action Alerts PLUS, which Cramer co-manages as a charitable trust and is long FB and AAPL.
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And, like NTU points out, fake reviews are rampant. Some can be spotted easily, others no one ever knows about. Bottom line, if I want a recommendation for a contractor or a hotel or whatever, I'm much more likely to ask someone I know.
Well, well, well...I see the "Fast and the Furriest" dialogue popped up after I left...
Nice to know everyone is in good spirits, alive and doing great.
Some name changing, other oldies showed up and even Fatty Cakes..
We don't think Fatty has gotten any new cars, he's just posing them differently...
Popping the hoods or trunks...Forward/backward displays..
As a LEETLE Yallow man, he probably has a couple of Banzai Trees, he stages them next to.
Or moves them around in his Ken and Barbie Garage.
Sometimes I just think he hangs around Tourist sites or Motels, offering to take pictures and then sneaks in a couple of their cars for his picture book...Ha, Ha.* (courtesy of Nelson/the Simpsons)
who? yelp? is that a site i should visit? i still don't understand why. i specifically avoid ads
"You go, you find out what people say, you read the ads and you go spend money at that advertiser"
Here's the Straight Skinny, CGT1.....What really happens today or tomorrow doesn't really matter.
End of week, Friday's close and maybe end of this next month, may have more bearing.
Markets and Indices can be down in actual numbers or percentages for the week..
But if FMV on anyone's portfolio is on an upside trajectory, is pretty much what counts.
And all that can depend on investments in the right Sectors or Equities.
Classic...I have moved on, only go to Websites I trust and matter-of-factly, don't really care about Ben that much, as long as he keeps up the good work or doesn't destroy us..
I like and respect him a lot more then Mr. Greenjeans....Sorry if you want to keep pressing on this, it means nothing to me at this time....You can try Regal or somebody else...Peace.
Yelp by today's standard may be of value....When Miss Lilly was in the biz, we only covered about 5-7 Counties and had enough business for our size, although we shipped sometimes out of State and or purchase raw materials......Many of her larger customers, were 1-2 year Contracts and within those County areas....Something like Yelp back then was not useful for us.
IT IS TIME TO GO GOLFING...Casino last night took most of my money, and I have about enough for 1 beer and 9 holes.....Ciao.
Yelp kind of reminds me of the Chamber of Commerce or the Better Business Bureau...
You pay your dues or subscribe and you get decent reviews or good ratings..
Unless you really blow it in service or products that you might provide..
Advertising in the Yellows or other sources, can get expensive..
But was part of the Business, that we had to allocate monies to...Just another cost factor.
Word of mouth, was probably the best attribute unless you needed more customers.
And a "spotless reputation" is what brings them to your door.
Yelp just kind of spreads you out to a lot more Venues in this fast paced world.
Veritas...We all or a few have wondered what has happened to your Buddy, ABS ??
Did you or was it Regal that possibly met him someplace, and had "a come to Jesus" ?
I don't think Doda or LOM have run him off yet...
Next Time...Some of the excitement generated today is, The S&P "breaks" through 1700, I guess first time ever !!...I thought we may have reached that plateau once before?
The jobs report or U/E reports...All just Job stuff to me...It was good.
And Bernanke, wasn't going to do or change anything drastically yet...
All good news for an Investor in a Recovering Economy...Is/was for us.
As far as Volatility the VIX indicator has been dropping for about 6 weeks into the 12's.
Back near the end of June it was close to the 19's... June was a rough month, because nothing really blew up in our faces in May. Traders were pissed, about maybe "walking away in May." My guess.
We have had an uptrend "Worldwide in Indices and Bourses" for what looks like about 6 weeks...
Granted, that is a fairly long stretch and to expect a mini-correction in the next week or two is not "un-expected"
In that same time frame there has been a FMV increase over the last 5-6 weeks in our overalls.
We are not ecstatic, but satisfied that this upward trend is still in-place.
And placing dividends in cash, along with culling portions of high flyers or non-performers into a buying fund....In case of a mini correction or a good dip, which I'm expecting over the next few weeks.
Yup Auto parts, I thought took it in the wrong places a while, maybe it was Chain shops...
But all those "new cars" will need fixing down the road or routine work, recalls etc.
We have had positions in Ford(F) for sometime...So the numbers are appreciated.
F has been very good for us..
And I think this latest upsurge is "pent-up" demand, along with people getting new or better jobs.
Housing and Autos have always had some strange ties..
If you move into a new neighborhood, you want to park a nice ride in the driveway to keep up with Jones' down the street or next door.
Trust me ,it would take a LOT more than an African Queen , A pretend person , a lover of others money to harm me. In fact , all three broke, douche bags would be on their knees kissing my a$$.
Not on vacation , just SOOOOOOOOOOOO bored dealing with simpletons , cretins and beggars.
My crap has a higher IQ and net worth than most of these lefty douche bags on here.
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