Yelp Inc (NYSE: YELP)
Yelp was off to a relatively rough start in the market this morning, making it into the red early on. However, minutes ago, the stock started spiking. After a bit of digging, we believe we know why. Below, we’ll talk about what we’re seeing from the stock, why, and what we will be watching for with regard to YELP ahead.
As mentioned above, today didn’t look like it was going to be one of the best of days for Yelp. As soon as the opening bell rang, the stock started running downward, making it well into the red early on. However, minutes ago, that all changed as the stock started to spike upward in a big way, making it cleanly into the green. Currently (10:20), YELP is trading at $36.63 per share after a gain of $0.34 per share (0.94%) thus far today.
Why The Stock Is Gaining
If you follow CNA Finance, you know that as soon as we saw this spike, we started to dig for reasons for the gains. While there was nothing fundamental released from the company that would suggest that this spike would be coming, we did find something – and it could be big.
At the end of the day, the spike we’re seeing in YELP at the moment is the result of social chatter. Users are sharing a big rumor all over social media. That rumor is that the company is going to be acquired soon. In this case, there’s even a suitor involved – TRIP.
What We’ll Be Watching For Ahead
First and foremost, please keep in mind that while the movement we’re seeing on YELP is overwhelmingly positive, it is ultimately the result of a rumor. While rumors do sometimes pan out to be true, it’s more than likely that an acquisition is not on the horizon. Nonetheless, we’ll be keeping a close eye on the story and bring you the news as soon as we dig it up!
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[Image Courtesy of Flickr]