Boston, MA 07/15/2013 (wallstreetpr) – Yelp, Inc. (NYSE:YELP), an online review company, had its IPO during early 2012, and is now generating revenue through advertising. Millions of reviews for the benefit of local businesses are being hosted in the company’s website, becoming the premier destination for reviews at a fast pace. The stock price since the company’s IPO has more than doubled, having a value of about $ 2.4 billion up to this day. Although for the past few years the revenue of Yelp, Inc. has grown quickly, the company has not yet recorded a profit. Yelp, Inc. posted a loss of $ 19 million during the year 2012, higher than the previous year’s loss of $17 million.
By officially launching the Yelp platform during this week, the company seems to be aware of the losses reported during the previous years. The visitors to the site can purchase directly through the Yelp platform. At initial stages, the company’s platform will be featuring only food delivery and pickup which will be expanded for booking for reservations at a salon and spa among others. However, if one intends to buy the stock, it should be noted that the company has not a clear future path.
During the last trading session, Yelp, Inc. hit its all-time high before closing with a gain of above 5% at the price of $ 39.40. Needham Research initiated a “buy” rating with a price target of $ 44 prior to the opening bell. The value of Yelp, Inc. has almost doubled this year, trading at $ 37.45.
Yelp, Inc. is collaborating with Delivery.com and Eat24Hours in order to provide the users with food-delivery service. This collaboration is aiming at keeping the customers on Yelp for longer durations and making the customers purchase on recommendations.