Yelp Files For IPO

November 18th, 2011 at 1:26 pm

Internet stocks seem to be enjoying quite an interest in the stock market. Internet companies that have recently gone through their IPO and go public are still doing very well. This has encouraged other tech companies to consider going public, especially those that are looking for some added capital and funding to run the company.

One of the Internet companies recently contemplating going public is customer-review site Yelp. It has recently filed for an IPO, right on the same day that business review site Angie’s List started trading on the market. Both companies operate quite a similar business model, just on different fields. And it seems that Angie’s List is doing well for a new entry in the stock market. This positive market response is giving Yelp just the right encouragement to continue on its plans of going public.

Yelp might be trying to ride on the successes of other previous Internet companies that have gone public. Groupon seems to be the banner holder for this year. Its IPO was considered as the biggest IPO ever since Google went public. Currently, Groupon stocks are managing fairly well in the market, with its current price around 24 percent of its initial offered price.

Yelp is seeking to raise around $100 million for its IPO. And it may be seeing a promising prospect by going public. Comparatively, it may do as well as Angie’s List, or even better. Yelp has far more reviews from Angie’s List, making it a bigger site that people can find more useful.

But eventually, the success of these internet companies will depend on investor sentiment on the market. While they may be all Internet companies, they all have different to offer to people in general. It may not necessarily mean that other Internet companies who may be planning their own IPO’s would also do well in the market. It will rely on how investors may see such stocks for the long term and how their growth opportunities are being viewed.

Such stocks have been viewed with caution ever since the Internet bubble burst in early 2000. It may not be thought as a resurgence since the early bubble was brought about by a rapid interest in a new and relatively growing Internet. Today, that excitement may have mellowed a bit, with investors now being wiser.

Even if Yelp may issue a successful IPO, that is not the only measure overall success. It still has to continue to make the company a worthwhile investment in the market in order to see its stock price rise and do well in the market. It is what happens after the IPO and in the subsequent market trading that will eventually measure the success of Yelp or any other Internet company for that matter.


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