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A month or so ago when I noticed that Yelp had benefitted from a Google algo update - a number of local SERPs were showing a large number of Yelp results on page one - I thought it would be a good idea to buy Yelp stock because their numbers were going to look really good in the short term.  Guess I should be a stock picker because Yelp's stock price is up 20% over the past month.
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Mechell Lord's profile photoAndrew Shotland's profile photoSergiu Draganus's profile photoDave Rodecker's profile photo
20 comments
Eric Wu
 
More like short the stock because it's going to get worse once Google figures it out.
 
I think Google knows what it is doing but I would short the stock, I think there is money to be made there. I do think it is crap if you do a Google search for nail salon san francisco.
 
Let's go for full-on conspiracy theory....How long until the SEC investigates the Google/Yelp relationship? #insidertrading
 
Thanks Andrew! This is more than interesting!

In the latest month I've seen also Yelp increasing a lot in Local SERPs for many common keywords, but stock exchange is a tricky game with many different variables. Are you sure this is not just a coincidence. Do you think there are so many players using Alexa as a decision factor on their stock exchange strategy?
 
+Sergiu Draganus I think the stock jump was more due to Yelp's food delivery service announcement earlier in the month, but it would be cool if you could make stock predictions based on these kind of SERP patterns.
 
Seems that Alexa is recommended as an insights source for improving the stock exchange strategy. 

http://www.infotoday.com/supersearchers/superwall.htm

Probably Alexa data has a certain influence on stocks value, if there is a large number of people using it in this direction, SERP analysis can help forecasting stocks value evolution
 
Yelp up 20% this morning on big increase in uniques...
 
When is this Yelp love gonna end so we can get back to reality.
 
Appears to be a glitch with the June 28th domain clustering update. I think Google is just "letting it go" since it only affects a small percentage of queries.
 
+Steve Wiideman it seems that Google has applied a patch on domain clustering on July 16-17 since Yelp traffic and rankings on Google 1st page decreased according to alexa com and some personal analysis. Not sure if today's stock increase is directly related to traffic this time.
 
+Sergiu Draganus I am still seeing the Yelp clustering on a lot of queries.  Today's stock increase appears to be based on two things:
1. Increased # of mobile advertisers/ad$
2. Increased # of visitors

"Yelp attributed its business performance to gains in usage and advertising from mobile devices."

If you have a popular mobile app, your ad $ are going to grow regardless.  But while Yelp may have been doing other stuff to get visitors, the clustered results must have had a significant effect on gains in usage.

I think the smart money is now in shorting the stock because:

1. Yelp insiders have been dumping a lot of stock over the past month (could be planned sales though)
2. At some point Google is going to correct this and usage will fall. Even though that might not affect ad $, it will spook investors

#motleyfoollocal   
 
Thanks for the local stock tips... wondering now if you made up the name "insider (pages)".
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