Yelp (NYSE:YELP) came out with earnings and as a new company of course prints red ink. No surprise. It also more or less promises to be near break even very soon. Still no surprise. Investors need to understand local is a long hard tough slog. You need critical masses in each market. If you are good in San Francisco it does not help someone in Miami. If anything if the experiences are not similar customers will become suspicious. Then you have the mediocrity factor. When too many people are raving about tha same thing it does not matter any more. You might even lose the cool.
George Gutowski writes from a caveat emptor perspective.
- Yelp’s Post-IPO Earnings: $27.4M in Revenue, Up 66% From A Year Earlier, But Net Loss Triples (techcrunch.com)
- Why Yelp is the Digg of local (venturebeat.com)
- After IPO, Yelp’s first quarter revenue jumps 66 percent (venturebeat.com)