Trading and Investing Forum

Go Back   Trading Forum and Blogs > Stock Market Trading


Reply
 
Thread Tools Display Modes
  #1  
Old 03-12-2012, 12:42 PM
Dan Blystone's Avatar
Dan Blystone Dan Blystone is offline
 
Join Date: Oct 2006
Location: Barcelona
Posts: 320
Dan Blystone is on a distinguished road
Send a message via Skype™ to Dan Blystone
Default 4 Issues Bearing Down on Yelp

Following Groupon, LinkedIn and Zynga, Yelp is the latest high profile tech IPO. Here are 4 salient challenges facing the local reviews site:

- Yelp has yet to make a profit, despite launching 8 years ago. For the full year in 2011, Yelp had a net loss of $16.7 million on sales of $83.3 million.

- Google, a potential competitor who recently acquired restaurant guide Zagat, is a key source of traffic to Yelp's website.

- The authenticity and fairness of it's reviews is another problem. In its initial filing back in November, Yelp said it had 22 million reviews on its site. But in an amended filing the figure dropped to 18 million after filtering out questionable contributions.

- The business model is easy to replicate. The barriers to entry to start a review site are low. Furthermore, established giants like Facebook and Google could easily step into the space.
__________________
Disclaimer: There is a substantial risk of loss in trading stocks, futures, options and forex. Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation with respect to the sale or purchase of any securities or commodities.
Reply With Quote
Reply

Bookmarks


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On

Forum Jump


All times are GMT -6. The time now is 11:14 PM.


Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.