Yelp Inc. ($YELP) Stock | Shares Tumble Despite Positive Earnings With Announcement Of CFO Stepping Down


Yelp Inc. (NASDAQ: YELP)



Yelp Inc. (YELP), a company that connects consumers with local businesses, yesterday announced their fourth quarter and full year 2015 financial results. YELP reported non- GAAP earning of a $0.11 per share which beat analyst expectations of a loss of $0.03. YELP revenues increased 40% year over year to $153.73 million which beat analyst expectations of $125.35 million. YELP reported a fourth quarter net loss of $22.2 million. YELP also announced that CFO Rob Krolik will be stepping down by December 15th or earlier if viable replacement can be found before then.  


Yelp Inc. CEO’s Comments

“We are pleased with the progress we made on the key initiatives we set at the beginning of 2015,” said Jeremy Stoppelman, Yelp’s co-founder and chief executive officer. “We have evolved to a mobile-centric company and have successfully completed our transition to a performance-based advertising business. In 2016, our priorities are to continue to build our core local advertising business, further increase engagement and awareness and grow transactions. With our rich, relevant review content and highly engaged consumer traffic, we are well-positioned to capture the enormous opportunity ahead of us.”  PR Newswire


YELP Technical Analysis

YELP Chart

YELP gapped down in price yesterday to $17.08, down from the prior day’s close of $18.10, which is a 6% decrease in price. Taking a look at the daily chart we can see that the last time YELP traded below this price level you have to go all the way back to November 12th 2012 when it traded at lows of $16.32. Taking a closer look at the daily chart we can see that YELP has been on a sharp decline dating back to December 31st when it traded at $28.80. YELP has a float of 55.56 million shares and is trading over 4 times the normal daily trading volume. YELP opened right at the pre market lows. For trading purposes, my entry short would have been $17.00 looking for a run down to $16. My stop loss would have been $17.20, fearing anything above that and the stock would start to fill in the gap down.


Company Profile

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.  Yahoo Finance