David Einhorn’s Great Call On Yelp

Hedge fund guru David Einhorn has nothing but positive reviews for Yelp Inc YELP and its stock. Back on May 2, 2016, Einhorn disclosed that Greenlight Capital had taken a huge new position in Yelp.

“We purchased Yelp at an average price of $21.16,” Einhorn said in a letter to investors.

“The stock has suffered due to missed expectations and anxiety about an upcoming negative documentary,“ he said at the time.

By early October, Yelp shares had already roughly doubled from Einhorn’s buy price. SEC filings revealed Einhorn began selling Yelp shares shortly after he bought them, cashing out nearly 334,000 shares in Q2 2016 and another 600,000 shares in Q3 2016.

See Also: Give Yelp A Bullish Review In 2017

Even after Yelp’s big post-earnings selloff last week, the stock remains up 66 percent since May 1, 2016. Despite a Q4 earnings beat on in-line revenue, Yelp’s guidance fell short of the market’s expectations.

It wouldn’t be surprising to see if Einhorn continued to sell Yelp with the stock near 52-week highs in the days leading up to the earnings report. Greenlight Capital is…

Click here to continue reading

Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common SenseI don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!

Leave a Reply