Here’s one for people seeking a romantic restaurant meal at an appetizing price. Consumers and investors love instant gratification and LiveDeal (LIVE) is delivering it to both groups.
This e-commerce company is led by the same entrepreneurs that brought the print yellow pages to the Internet. LIVE stock is up 325% this year alone.
People looking for great deals on restaurants are heading there in droves. Traffic to the Las Vegas-based company’s web sites shot up 153% in January compared to the same month a year ago.
That gain came largely due to LiveDeal’s launch of DealCentral, the world’s first online portal that gives restaurants a low-cost way to advertise directly to consumers by making “live” limited-time offers instead of having to deal with fee-heavy third parties. It’s a welcome service for a business already wrought with thin profit margins. Based on geo-location, LiveDeal also made a push into the San Diego, Los Angeles and San Francisco markets in January.
LiveDeal already caters to more than 1,000 restaurants in the San Diego area, or about 20% of the market.
On top of its online business, LiveDeal will be providing access through Apple iOS and Android apps by the end of first quarter 2014.
It is a first of its kind service for the $680 billion food and beverage industry.
According to Analyst Rob Goldman, “Wall Street has really taken notice of since the first of the year, sending shares sharply higher to a January high of $25.73. A small consolidation has shares back to $17 per share, presenting a unique opportunity to take a look at LiveDeal while it still trades at a favorable valuation relative to its peers.
The $65.8 million company has yet to turn a profit, however, analysts believe that its innovative business model can make that happen in the short term.