What’s the review on this internet review site? Positive.
Discussed in this article: Yelp ( $YELP )
I want to go over Yelp ( NYSE:YELP ) real quick. There were a couple different reasons the stock was up so much on Friday. First of all buyers were a lot more aggressive than sellers. I think a lot about was because of Deutsche Bank’s initiating coverage on this as a buy.
So this business, forget about the stock for a minute, the business seems to really be picking up a lot more momentum and that’s a good thing. You don’t really see that happen very often with many businesses, but I see Yelp ( NYSE:YELP ) mentioned more in the news, online and other venues. It just seems to me like this company is just really starting to dominate. Once you get a dominant player in a space that player is going to keep dominating, particularly if the space is fairly new.
So what do we do here with Yelp ( NYSE:YELP )? Well, you look at the volume here; I have a hard time buying a stock that’s up $6.00 in the day, and if you just look at it over the last few trading days it’s up over 20 percent. Now, it’s come out of a squeeze so when you see these stocks pop out of a volatility squeeze a lot of times they’re going to go farther and faster than you think they’re going to go; that could be the case with Yelp ( NYSE:YELP ).
I’m just saying buying the stock at 62.40, it may hit save 65.00, it may even hit 70.00, but the best time to be buying this stock is just to wait; you wait and you look for the stock to ultimately settle in somewhere here and that’s when you’re really going to want to buy this stock. Then you can still be taking advantage of this trendline; you’re just not buying it too extended.