Feb 17, 2012, 11:50 am EDT
It looks as if Yelp may go public within the next couple weeks. The site — which provides consumer reviews of local businesses — has set the initial terms of the deal: to sell 7.2 million shares at a price range of $12 to $14. Lead underwriters include Goldman Sachs (NYSE:GS), Citigroup (NYSE:C) and Jefferies (NYSE:JEF). The company plans to list on the NYSE under the symbol YELP.
When it comes to other hot social stocks — such as Groupon (NASDAQ:GRPN), LinkedIn (NYSE:LNKD) and Zynga (NASDAQ:ZNGA) — Yelp has much lower revenues: They came to $83 million last year. In fact, Yelp had a loss of $16.7 million, up from a loss of $9.6 million in 2010. To spur growth, Yelp has been pumping up spending on sales, marketing and product development.
For the most part, Yelp is similar to Angies’ List (NASDAQ:ANGI), which went public last year. That stock has a -5.2% aftermarket return. Read
Feb 16, 2012, 8:46 am EDT
When Facebook filed for its IPO a few weeks ago, investors rushed into hot social stocks like Groupon (NASDAQ:GRPN), Zynga (NASDAQ:ZNGA) and LinkedIn (NYSE:LNKD). The result: The Social Stock Tracker surged more than 9% in one week!
Things have calmed down since then. But as Facebook gets closer to its offering — which is expected to occur in May — the investor intensity will be extreme. If the valuation reaches $100 billion or more, the company will be in the league of marquee tech companies like Google (NASDAQ:GOOG), Microsoft (NASDAQ:MSFT) and Intel (NASDAQ:INTC).
But Facebook’s IPO likely will have another effect: an IPO “black hole.” Read
Feb 15, 2012, 1:53 pm EDT
As the much-ballyhooed Facebook IPO approaches, there’s a mountain being made out of a molehill. Turns out 27-year-old founder and CEO Mark Zuckerberg may have a $2 billion tax bill that, according to a variety of sources, he intends to pay in full.
He seems like a regular guy…or is he?
To say I’m skeptical of his intentions would be an insult to actual skeptics. I think Zuckerberg is a great guy, but a regular guy? No way. He didn’t build from scratch a business that has 845 million customers by being a regular guy. Read
Feb 14, 2012, 5:30 pm EDT
Zynga’s (NASDAQ:ZNGA) IPO in mid-December looked like a big dud. The stock immediately plunged from $10 to $8 within a few weeks. But so far this year, Zynga has been a good game for investors. The stock hit $14.33 in today’s trading
One reason for the mega-spike was speculation Zynga might move into online gambling (although, it looks like that will take quite awhile). There was also some excitement from a deal with Hasbro (NYSE:HAS). And of course, the Facebook IPO was a big factor.
But were the expectations too enthusiastic? Based on Zynga’s earnings report since becoming a public company, released after the bell on Tuesday, the answer is no. Read
Feb 14, 2012, 12:08 pm EDT
Coming public in mid-December, Michael Kors (NYSE:KORS) was one of the top IPOs of the year, spiking 21% on its first day of trading. KORS is the global luxury brand of its namesake designer, with product lines for apparel, handbags, shoes and watches.
Today, the stock got another boost, up almost 23% at midday to around $41.25 — almost double its $20 IPO price!
This came off Michael Kors’ blowout quarterly report — its first as a publicly traded company. Revenues soared 68% to $376.6 million, which beat the Wall Street consensus of $349 million. Same-store sales climbed 38% in North America and up 34.4% in Europe. And adjusted earnings came to 28 cents per share. Read
Feb 13, 2012, 12:05 pm EDT
At a 102-stories, the Empire State Building is certainly an icon. In fact, it has been classified as a National Historic Landmark.
Now the Empire State Building will venture into the IPO market, where it could raise $1 billion or more. The building will be part of an entity called the Empire State Realty Trust, with the proposed ticker of “ESB.” The underwriters include Bank of America Merrill Lynch (NYSE:BAC) and Goldman Sachs (NYSE:GS).
The offering will be structured as a real estate investment trust (REIT), which means there will likely be a dividend. The company will also include 11 other buildings in Manhattan and the greater New York metropolitan area. In all, they cover 7.7 million rentable square feet of office space (about 80% is leased). Some of the marquee tenants include AT&T (NYSE:T), Best Buy (NYSE:BBY), Starbucks (NASDAQ:SBUX) and JPMorgan Chase (NYSE:JPM). Read