Mr. Market woke up this morning and says that he’s willing to sell his investment in YELP for 12% less than he was yesterday after YELP says next quarter will be a couple million less than the analysts had expected but that full year guidance might even be better than expected. To be sure, the guidance from YELP is soft and when a stock trades as volatile as YELP does and for as high a multiple as YELP does, it’s probably going to get hit for soft guidance. But we’re still looking at 50% revenue growth again next year in my models, and as YELP stays below $100, it might even start to get interesting as an acquisition play again.
We’re still up from our initial tranches and I’d trimmed YELP at highs a while ago. I’m just going to hold my YELP steady for now, not adding to it or selling it. If I didn’t own any of it, I might look to start a small tranche investment in the common.
No trades for me so far today. Let’s see what other pitches come our way.