Can Yelp But Wait


...unless it's Trey Day then I Gotta Make It to check in.

Monday, August 12th | Issue No. 86

MARKET MOVES...

S&P 500: 2,918.65 -19.44 (-0.66%)

Dow Jones: 26,287.44 -90.76 (-0.34%)

Nasdaq: 7,959.14 -80.02 (-1.00%)

PRE-MARKET PLAY...

Trey Songz feat. Ty Dolla $ign & Tory Lanez - "Shootin Shots"

WHEN YOU DON'T NEED NO HATERATION OR HOLLERATION...

Just give them a bad review but don't check-in in this dancery.

Since it's IPO in 2012, Yelp (NYSE: YELP) has done pretty much everything but get it percolating while investors were waiting on some type of return. Now, it looks like the business directory company is ready to cash in by leveraging several multi-location businesses and make it a family affair.

WHY THIS IS HAPPENING...

A majority of the ad dollars spent within the platform come from small mom and pop shops but multi-location businesses are on the come up now making up 25% of revenue that comes from ads. Revenue growth is up 5% year-over-year thanks to deals with major players like Starbucks (NASDAQ: SBUX), McDonald's (NYSE: MCD), Target (NYSE: TGT), and H&R BLock (NYSE: HRB) just to name a few. Looks like Yelp is ready to switch gears and focus its efforts on the larger brands to get top dollar from a few rather then a few dollars from many. As the saying goes, big bank take little bank, and Yelp has its eyes on the high rollers.

THE RETURN...

Yelp's stock was up over 5% on Friday after the news is up a total of 6% so far this year.

KEEPIN' IT REAL...

Want to know what an IPO is? Check out Issue No. 85.

Leverage typically involves using borrowed money to make more money (i.e. business loan) but at its core, it's using one thing (e.g. money, branding, property) to achieve something else (e.g. revenue, users). Imagine you're a new artist with a small audience in need of exposure so you sign to a major label with efforts to reach more people and make more money, that's leverage.

Year-over-year or "YOY" is just another way of saying "this compared that" with "this" being a specific quarter this year and "that" being a specific quarter during the same timeframe last year (e.g. "The company, which reported second-quarter earnings Thursday, saw revenue from multi-location clients during the quarter rise 21% year-over-year.").

WEWORKIN' ON IT...

An IPO that is.

WeWork, the $47 billion dollar co-working company, has decided to speed up its timeline for going public (as soon as next week) and becoming the 2nd largest IPO this year after UBER (NYSE: UBER). The original plans were to go public last winter but after an influx of cash the founders were like...

WHY THIS IS HAPPENING...

If you Google (NASDAQ: GOOG/GOOGL) WeWork then you'll quickly realize it's synonymous with co-working. The company is worth almost $50 billion in less than a decade despite the fact that it's practically losing $2 for every $1 it makes. And what do you do when you aren't turning a profit? Ask for more money! With the cost of real estate, especially commercial, consistently increasing, WeWork has shown be a viable solution for many businesses.

THE RETURN...

No details at this time as it's a private company but as stated above, it takes money to make money or lose it in this case.

KEEPIN' IT REAL...

Want to know what an IPO is? Check out Issue No. 85.

MORE PAPERTRAILS...

DID YOU KNOW...

The longest named place in the world has 85 letters. What's it's called?

WHO'S GOT NEXT...

Companies reporting earnings today about how much paper they're stackin' (or losing) and new things to come:

  • Famous Dave's (NASDAQ: DAVE)

  • Sysco (NYSE: SYY)

SHOW SOME LOVE...

Have a great financial tip to share or a question that Sway can't answer? Reply to this email with your tip or question, and it could be featured in a future issue.

Dr. Eric Patrick

Writer | Marriage Ministry Advocate

Learn How to Invest in 5 Days

Disclosure: This editorial is by no means a solicitation to buy or sell any of the above-mentioned securities. It is merely a means for educational purposes. All investors are subject to their own research and due diligence. This post may contain affiliate links and we may receive commissions for purchases made through links in this post.

#investing #papertrail #yelp #wework

  • Black Facebook Icon
  • Black Instagram Icon
  • Black Twitter Icon
  • Black YouTube Icon

© 2014-2020 Black Market Exchange, LLC

Website created by DocDesigns.