Yelp shares surge post-lockup expiration

Yelp’s shares are surging about 20 percent to $21.80 as of this post, a day after its 180-day lockup period expired and early investors became eligible to sell their shares.

What does the San Francisco online-reviews company, which went public in March, have that Facebook and Groupon don’t? Shares in those companies tanked after their lockup periods expired. But the New York Times’ Evelyn Rusli points out that Yelp had already seen its shares hammered in the past couple of weeks on the expectation of a post-lockup sell-off. So far, Rusli reports, it looks like CEO Jeremy Stoppelman, Max Levchin, Bessemer Ventures, Elevation Partners and Benchmark Capital — the company’s largest investors — are holding on to their shares.

And Bloomberg reports that investors like Yelp’s growth prospects. Analysts expect its revenue to more than double next year, and Wedge Partners’ Brian Blair told Bloomberg that “Yelp is on its way to becoming a household name because of this Apple integration.” In July, there were reports that Apple is planning to integrate Yelp into its maps offering in the upcoming version of iOS.

 

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