OptionsHouse

Options Trading News

October 2, 2012  Tue 8:20 AM CT

YELP: SEE CHART GET CHAIN FIND STRATEGIES
Don't look now, but Yelp is about to take out its high. That's right, a social-media company that's regaining lost ground in a truly terrific run, no doubt aided by Yelp's inclusion in Apple's new iPhone 5.

Yelp has been one of the nuttiest of the IPOs, in part because the stock has been totally out of whack with other players in the space. For example, this stock got pressed down beyond all belief ahead of a lock-up expiration and then the darned thing roared, no doubt encouraged by a huge short position.

I have liked Yelp ever since I interviewed the company's CEO, Jeremy Stoppelman, on the day it went public. It was easy to like, because in a world where people are gravitating from the desktop to tablets and smartphones, few companies have the edge that Yelp does.

TheStreet.com logoI am on Yelp pretty constantly, looking for places to go that have good word of mouth. I have also been tempted to place an ad in Yelp for the inn I co-own, if only to snag some of the traffic from people who get off a plane in Newark and need a place to stay.

The company is viable, even though it is expensive both on earnings and on market cap.
That said, if I were a Yahoo desperate for a social strategy, it would be an easy call to bid $2 billion for this one. Instant social dominance in a world where there are very few smartphone plays of any real value.

Disclosure: Cramer's charitable trust is long AAPL.
Share this article with your friends


Related Stories

YELP

Yelp attracting calls before earnings

January 28, 2015

Short-term traders are looking for a pop in shares of the social-review service before it reports earnings next week.

Invest Like a Monster - Las Vegas: March 13-14

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Webinar Recording

Turbo Charge Your Trading Profits

Education & Strategy

The Strike-Based Greeks

The other Greeks (Gamma, Vega, and Theta) are calculated by using month and strike data, and not by individual option. These are called strike-based Greeks. Gamma, Theta, and Vega are all strike-based Greeks

View more education articles »