Yelp Stock Surges After Earnings Beat

The stock has been rebounding from its late-January lows

Deputy Editor
Feb 11, 2022 at 9:46 AM
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Yelp Inc (NYSE:YELP) stock is staging a jump today after the company's fourth-quarter earnings report. The review giant reported earnings of 30 cents per share, which is higher than the 14 cents anticipated by analysts, as well as better-than-expected revenue and an upbeat forecast. At last check, YELP is up 6.4% to trade at $36.73. 

The stock is brushing off a price-target from Credit Suisse to $49 from $51. However, there is plenty of room for upgrades for a stock that has just reclaimed its year-to-date breakeven level. Of the nine analysts in coverage, only one carries a "strong buy," with eight a "hold" or worse. 

On Jan. 24, YELP fell to a 1-year low of $31.60. Now, this positive price action has the shares breaking above pressure at its 50-day moving average, as well as the aforementioned year-to-date breakeven. 

Meanwhile, sentiment in the stock's options pits is nearing a bearish climax. YELP's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.16 sits just seven percentage points away from an annual peak. 

premium-selling strategy could be the play for YELP. The equity ranks low on the Schaeffer's Volatility Scorecard (SVS), with a score of just 4 out of 100. In other words, the security has consistently realized lower volatility than its options have priced in.


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