Total net income will be lower this year due to the increased investments in marketing. The real gains won’t occur until 2014. Investors should hold on for the next year and watch this company continue to grow.
Like Zillow Inc (NASDAQ:Z), Yelp Inc (NYSE:YELP)’s stock price has also risen 200% since its IPO last March. The company announced its earnings for the first quarter on May 1. Total earnings per share missed estimates by $0.05, coming in at a loss of $0.08 per share. The company did reach new revenue highs of $46.1 million.
The company has been expanding its mobile platform and started mobile advertising. Roughly one third of all local advertisements for restaurants came in the form of mobile ads. This area will continue to grow in the future. Companies will need to begin adapting to mobile advertising trends. Yelp is already ahead of the curve.
Yelp Inc (NYSE:YELP) is also expanding internationally. During the first quarter of this year, it opened its operations in New Zealand. This trend is likely to continue in 2013.
Total views and reviews are up over 40% each for this quarter. Revenue is expected to increase and losses are expected to decline as the company pushes mobile advertising and continues its expansion efforts. The company isn’t expected to be profitable for another year, so now may be an excellent time for investors to consider Yelp for their portfolio.
Internet companies are poised for rapid growth as more users subscribe to online services. Companies that can capture mobile advertising and mobile monetization will benefit the most in the coming years. These three companies have great growth potential. Investors should seriously consider these stocks for their portfolios.
The article Internet IPO Update: Big Growth and Big Potential originally appeared on Fool.com and is written by Austin Higgins.
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