Yesterday Yelp reported its second quarter earnings, beating on revenue, and announcing that it was profitable in the period, a first for the company.
Its shares rose, and then fell in after-hours trading. Yelp opened down today, and is currently off nearly 12%.
What’s going on? With $88.8 million in revenue, and $0.04 in per-share profit, Yelp more than hit its big numbers. However, according to some, investors had expected stronger than reported growth in its business accounts. It could be that investors are discounting the company’s shares on the presumption that if its business account growth is slowing now, it may not have much runway to grow its top line in the future.
Yelp is now worth around $4.8 billion. Here’s the chart:
