Saturday, November 12, 2011

Yelp IPO

A few days ago, I saw that Yelp was going to have an IPO.  I am a big fan of Yelp and think it's a really great web service.  I also like its integration with Facebook.  But reading the announcements about it, I did wonder...just how does Yelp make money?  Advertising.  But how much money does it make, and what is the stock price going to start at?  I was excited, and planned to follow the news.  After all, the IPOs of similar tech/web based social networking companies have gained a lot of attention.  I'm amazed at how much interest these companies get, actually.  I wasn't interested in Linked In, which I don't use and don't care for, and I wasn't interested in Groupon either because it's one discount site among many.  I feel like traders are just desperate to buy into something like Facebook, which is not offered.
Then I saw this article on dailyfinance.com, written by Jonathan Berr of Motley Fool.  I really appreciate the articles on Motley Fool and I find their takes to consistently be intelligent and relatively easy to understand.  Anyway, I thought this put in perspective Yelp's IPO.

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