Yelp IPO as Compared to Other Internet Offerings

Joel Anderson |

Yelp IPO, how did Yelp IPO go, how much is Yelp worthYelp (YELP) is off and running, posting a massive opening jump. Yelp's IPO price of $15 was clearly a modest one as Yelp opened up 47 percent and soon leapt as high as 73 percent before settling in at almost 65 percent.

Despite Yelp being initially priced at the high-end of its projected range, it had the sort of massive first-day spike for an internet company that appeared to be less common as of late. Yelp's major boost makes it one of the biggest gainers for an opening day in the last year.

Here's a quick look back at other internet IPOs in the last year, how they fared on their first day, and where they're at now.

Zynga (ZNGA)

IPO Date: December 16, 2011
IPO Price: $10/share
First Day Close: $9.50, down 5 percent
Currently: $14.69, up 54.63 percent since opening day close

Zynga is the only internet IPO that actually finished down on its first day. The company has been dogged by concerns that it's too reliant on Facebook (FB) for its revenues, but it's made major gains since its IPO and showed a real profit in its first earnings report.

Pandora (P)

IPO Date: June 15, 2011
IPO Price: $16/share
Opening Day Close: $17.42, up 8.88 percent
Currently: $13.90, down 20.20 percent since first day close



The internet radio company posted only a modest gain on its first day of trading, but it briefly reached $26 before falling to its current price.

Angie's List (ANGI)

IPO Date: November 17, 2011
IPO Price: $13/share
First Day Close: $16.26, up 25 percent
Currently: $15.25, down 6.21 percent since first day close

Angie's List might be the most similar business to Yelp, offering customer generated reviews of service companies.

Groupon (GRPN)

IPO Date: November 4, 2011
IPO Price: $20/share
First Day Close: $26.11, up 30.55 percent
Currently: $19.20, down 26.46 percent from first day close

Groupon's business model has been the subject of great scrutiny, but it's issued 2012 guidance that beat analysts expectations and will have ample chance to prove the shorts wrong.

LinkedIn (LNKD)

IPO Date: May 19, 2011
IPO Price: $45 per share
First Day Close: $94.25, up 109.44 percent
Currently: $87.50, down 7.16 percent since opening day close

LinkedIn may be the poster boy for excess on the first day of an IPO, and the stock quickly fell under $65 per share soon after. LinkedIn, though, has started using its social media platform to transition into the role of corporate recruiter, making for a solid earnings report for Q4 2011 and a sign that the first day close might not have been too high after all.

Yelp (YELP)

IPO Date: March 2, 2012
IPO Price: $15/share

Opening day close: $24.58

Yelp's major bump on the first day could be a sign that the investors are getting geared up for the upcoming IPO of Facebook (FB).

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
YELP Yelp Inc. Class A 28.29 0.45 1.62 2,007,194 Trade
FB Facebook Inc. 148.24 0.18 0.12 12,591,669 Trade
CCC Calgon Carbon Corporation 14.20 -0.15 -1.05 219,238 Trade
P Pandora Media Inc. 9.12 -0.12 -1.30 7,585,897 Trade
LNKD LinkedIn Corporation Class A n/a n/a n/a 0 Trade
GRPN Groupon Inc. 3.33 0.01 0.30 4,218,780 Trade
ANGI Angie\'s List Inc. 11.41 0.17 1.51 635,353 Trade

Comments

Emerging Growth

Inception Mining Inc

Inception Mining Inc a mining exploration stage company engaged in the acquisition, exploration, and development of mineral properties, for gold from owned mining properties.

Private Markets

Ozobot by Evollve Inc

Ozobot is a world leader in compact super intelligent robots that entertain and educate through fun interactive gaming.

BioSculpture Technology, Inc.

BioSculpture Technology, Inc. (“BST”) is a commercial-stage medical device manufacturer of liposuction surgical instruments for surgeons. It offers the FDA-cleared Twin Cannula Assisted Liposuction ("TCAL") Airbrush Liposculptor II® controllers, Airbrush®…