Compelling Starter Buy for Yelp

11 days ago

Ryan

"Okay, despite the disappointments with the proxy statement, I am still very compelled by the valuation. I think I'm going to buy some shares. It's going to be a starter position. And the two metrics I'm tracking to potentially raise my position sizing is whether I am right about the services business. Because if they have a unique method of approaching a valuable customer group, this could be a much bigger business and you're going to get the benefit of revenue growth plus operating margin expansion plus either multiple rerating or huge stock buybacks which is a recipe for great returns. You can keep that going to help not only with that upside but with the downside protection as well."

Ryan expresses a strong bullish stance on Yelp, indicating a starter position buy. His rationale is based on the company’s attractive valuation, potential revenue growth and operating margin expansion driven by its expanding services segment, and the benefit of share buybacks as downside protection.

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