Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of consumer-review website Yelp soared 24% today after the company's quarterly results and guidance topped Wall Street expectations.

So what: Yelp's first-quarter loss of $4.8 million was a bit wider than expected, but a beat on the top line -- revenue surged 68% to $46.1 million -- coupled with upbeat guidance for the rest of the year reinforces optimism about its growth prospects going forward. While the company remains in the red, analysts seem confident that Yelp's booming mobile business -- roughly 45% of Yelp searches now originate from the mobile app -- will drive big profits over time or simply be too juicy for a larger company not to gobble up.


Now what: Management now sees second-quarter revenue of $52.5 million-$53.5 million and a full-year top line of $216 million-$218 million, both nicely ahead of Wall Street, which landed at $50.4 million and $212 million. "Looking to the rest of the year, we will continue to focus our product innovation around the mobile experience and new features to better serve the consumer and local business owners, and we will continue integrating Qype into the Yelp platform," CEO Jeremy Stoppelman said. With the stock now up more than 100% from its June lows and trading at a price-to-sales of about 12, however, much of that bullishness might already be baked into the valuation.

Interested in more info Yelp? Add it to your watchlist.

It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

The article Why Yelp Shares Leaped originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Increase your money and finance knowledge from home

Investing Like Warren Buffett

Learn from one of the world's best investors.

View Course »

Investing in Real Estate

Learn the basics of investing in real estate.

View Course »

Add a Comment

*0 / 3000 Character Maximum