There's No Real Competition for OpenTable (OPEN) Right Now - Cramer
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OpenTable (Nasdaq: OPEN) is ticking higher following positive comments from stock wunderkind Jim Cramer on Friday.
Cramer averred that there is absolutely no real competition for OpenTable in the segment it operates. Though other companies do the same thing, none have the scope of scale of OpenTable.
OpenTable recently reported taking reservations for 20,000 restaurants nationwide, Cramer noted.
Urban Spoon is the nearest competition. The company said it gets about 10 million uniques every month, while Cramer countered that, while 10 million sets of eyeballs are hitting the page, OpenTable is seating 10.9 million diners.
Cramer explained OpenTable's system: "If a restaurant wants to use OpenTable's electronic reservation book system, they pay a one-time installation fee for hardware and training...They also pay a monthly subscription fee to use OpenTable's system, and then OpenTable also collects a fee for every customer who gets seated through that system."
Along with its vast U.S. clientele, OpenTable also has about 7,800 clients internationally.
Shares are up over 2 percent Friday morning.
Cramer averred that there is absolutely no real competition for OpenTable in the segment it operates. Though other companies do the same thing, none have the scope of scale of OpenTable.
OpenTable recently reported taking reservations for 20,000 restaurants nationwide, Cramer noted.
Urban Spoon is the nearest competition. The company said it gets about 10 million uniques every month, while Cramer countered that, while 10 million sets of eyeballs are hitting the page, OpenTable is seating 10.9 million diners.
Cramer explained OpenTable's system: "If a restaurant wants to use OpenTable's electronic reservation book system, they pay a one-time installation fee for hardware and training...They also pay a monthly subscription fee to use OpenTable's system, and then OpenTable also collects a fee for every customer who gets seated through that system."
Along with its vast U.S. clientele, OpenTable also has about 7,800 clients internationally.
Shares are up over 2 percent Friday morning.
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