Canaccord Genuity Morning Coffee on Yelp (YELP): Does Anyone Remember Squeezit?
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Price: $23.46 -0.59%
Rating Summary:
17 Buy, 24 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
17 Buy, 24 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Canaccord Genuity Morning Coffee on Yelp (NYSE: YELP): Does anyone remember Squeezit?
Over 50 million shares of Yelp became available for trading after their post-IPO lockup on Wednesday, and after falling by more than 30% in the past three weeks, shares rallied as bearish investors looked close their short positions. With many of 2012’s tech IPOs getting smacked down on their first free trading days (Facebook (Nasdaq: FB) down 6.9% on August 16 and Groupon (Nasdaq: GRPN) down 8.9% on June 1), investors were unloading and shorting shares of Yelp in advance of the lockup expiration. As of Tuesday, 29% of Yelp shares were shorted according to Markit. The end result? A short squeeze as short sellers were forced to buy back shares, pushing the price higher. As the stock climbed, more short sellers were required to buy back their positions at even higher prices helping push Yelp deep into the green and above its IPO price.
Over 50 million shares of Yelp became available for trading after their post-IPO lockup on Wednesday, and after falling by more than 30% in the past three weeks, shares rallied as bearish investors looked close their short positions. With many of 2012’s tech IPOs getting smacked down on their first free trading days (Facebook (Nasdaq: FB) down 6.9% on August 16 and Groupon (Nasdaq: GRPN) down 8.9% on June 1), investors were unloading and shorting shares of Yelp in advance of the lockup expiration. As of Tuesday, 29% of Yelp shares were shorted according to Markit. The end result? A short squeeze as short sellers were forced to buy back shares, pushing the price higher. As the stock climbed, more short sellers were required to buy back their positions at even higher prices helping push Yelp deep into the green and above its IPO price.
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