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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- 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.Aug 1, 2013
- pointed it out the day of the change. Not sure if had any feedback or insights. The example issue was "nails tustin".Aug 1, 2013
- 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.Aug 1, 2013
- 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
#motleyfoollocalAug 1, 2013
- Thanks for the local stock tips... wondering now if you made up the name "insider (pages)".Aug 2, 2013
- Aug 2, 2013