Buy OpenTable (OPEN), No Reservations Needed! - Cramer
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Price: $2.14 -2.28%
Rating Summary:
5 Buy, 12 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 9 | Down: 14 | New: 50
Rating Summary:
5 Buy, 12 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 9 | Down: 14 | New: 50
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OpenTable (Nasdaq: OPEN) shares are holding strong into the close Friday amid bullish comments by Jim Cramer on Thursday's Mad Money. The pundit spoke with OpenTable CEO Matt Roberts.
Shares of OpenTable ended up trickling down from highs of $118 in April to a low of $31.54 last November. The stock is up 53 percent since then as the stock has caught value investors attention.
Roberts said there's a world of opportunity out there for OpenTable with only 12 percent of U.S. restaurant reservations currently being made online. Though expansion takes a little bit of time, Roberts said OpenTable has a much easier time expanding once a few locations are using the service.
There were a few rumors Roberts addressed as well. First, he sees no correlation with gas prices and OpenTable's growth. Restaurants will either sign on or not despite gas prices. Next, he said Google's (Nasdaq: GOOG) recent acquisition of Zagat didn't make the search giant a competitor; Roberts noted Google was actually a partner with the company. Finally, despite weakness in the region, Roberts stated momentum in Europe was solid, with particular emphasis on the U.K.
On it's "daily deal" initiative, Roberts said it "simply didn't resonate" with diners, instead of folks thinking it "suffered at the hands of Groupon (Nasdaq: GRPN)."
Cramer echoed Roberts' sentiment, saying OpenTable was too small given the size of opportunities. Cramer recommends to pick-up some shares.
The stock is up about 0.8 percent Friday afternoon.
Shares of OpenTable ended up trickling down from highs of $118 in April to a low of $31.54 last November. The stock is up 53 percent since then as the stock has caught value investors attention.
Roberts said there's a world of opportunity out there for OpenTable with only 12 percent of U.S. restaurant reservations currently being made online. Though expansion takes a little bit of time, Roberts said OpenTable has a much easier time expanding once a few locations are using the service.
There were a few rumors Roberts addressed as well. First, he sees no correlation with gas prices and OpenTable's growth. Restaurants will either sign on or not despite gas prices. Next, he said Google's (Nasdaq: GOOG) recent acquisition of Zagat didn't make the search giant a competitor; Roberts noted Google was actually a partner with the company. Finally, despite weakness in the region, Roberts stated momentum in Europe was solid, with particular emphasis on the U.K.
On it's "daily deal" initiative, Roberts said it "simply didn't resonate" with diners, instead of folks thinking it "suffered at the hands of Groupon (Nasdaq: GRPN)."
Cramer echoed Roberts' sentiment, saying OpenTable was too small given the size of opportunities. Cramer recommends to pick-up some shares.
The stock is up about 0.8 percent Friday afternoon.
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