Yelp Inc. (NYSE: YELP) had a stellar initial public offering last week. Its Friday debut closed at $24.58 after hitting a high of $26.00 versus its pricing at $15.00. That price was also above its indicated price range. Now the question after the weekend to ask is “Was that it?”
Shares of Yelp closed down 14.7% at $20.95 on Monday, a sure concern that the first reaction was just too high for a company where the common holders who bought at the public offering or on the open market really have no real voting power. What is perhaps even more concerning is that there were only 2.88 million shares traded today.
We did note before that Yelp made Angie’s List, Inc. (NASDAQ: ANGI) look very attractive but we would stress that comparing two overlapping IPO companies is a move that can act irrational far longer than many might expect.
Angie’s List saw its stock close up 2.3% at $15.61 on the day.
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