Yelp has been one of those disappointing “second tier” Internet companies: so much promise, but so little follow through. Though it’s a popular app that many of us rely on to find services, restaurants, and stores, the company has had a hard time monetizing their system and turning the company into a profitable one.
The charts and technicals clearly show that Wall Street has given up on them – the stock is well off all time highs. During 2016, rumors about a potential takeover moved the stock in fits and starts, and in October Yelp was down just about every day after a massive reverse candle pattern appeared. However, after posting some decent earnings in early November, the stock became rangebound. Now it seems to be making some bullish strides.
Momentum has returned, and relative strength is impressive. Resistance sits at the “rejection” candle (around $41), but that may be the next level to conquer. If the stock breaks through, then it’s up to October highs. I like the trajectory here and could see this move up toward the $50’s before too long.
Yelp (Nasdaq: YELP) Video Chart Analysis
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About Yelp!
Yelp Inc. operates a platform that connects people with local businesses primarily in the United States. Its platform covers various local business categories, including restaurants, shopping, beauty and fitness, arts, entertainment and events, home and local services, health, nightlife, travel and hotel, auto, and others categories. The company provides free and paid business listing services to businesses of various sizes, as well as enables businesses to deliver targeted search advertising to large local audiences through its Website and mobile app. It also provides other services, including Yelp platform, which allows consumers to transact directly on Yelp; Yelp deals that allow local business owners to create promotional discounted deals for their products and services; and gift certificates products for local business owners to sell full-price gift certificates directly to customers. The companys Yelp platform enables consumers to complete food delivery transactions, book spa and salon appointments, order flowers, make winery reservations, and others. It also serves customers in Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, the Czech Republic, Denmark, Finland, France, Germany, Hong Kong, Ireland, Italy, Japan, Mexico, the Netherlands, New Zealand, Norway, the Philippines Poland, Portugal, Singapore, Spain, Sweden, Switzerland, Turkey, and the United Kingdom. The company was founded in 2004 and is headquartered in San Francisco, California.
