Dump Facebook Invest in Yelp
Unlike Facebook, shares in YELP soared 64% on their opening day back in March from their opening price of $15.
Yelp is an online consumer-review site and it's price has held its own around $25 while Facebook has been slumping over 50% and some say it is on its way to $10. Mr Zuckerberg has said he will not sell his shares for 1 year but apparently he initially said, before the float, that he had no intention of selling any shares at all.
Yelp makes money from advertising (don't we all! Maybe I should float on the stock market). Most of their ads come from the local businesses that are reviewed by the users. In 2011, it had revenue of $83.3 million, up 74% from 2010. Still, it had a net loss of $16.7 million last year and $9.6 million the year before.
Yelp.com gets 66 million monthly unique visitors and had 25 million reviews at the end of 2011. People used the company's mobile application, on 5.7 million mobiles a month. There is a possibility however that Google and Facebook "could grab more of the local advertising pie".
My feeling is that at some point Yelp will be bought out by a bigger shark, maybe even Facebook?