Business

This week in tech stock: Yelp & LinkedIn surge on strong earnings

Image Credit: Yelp/Flickr

It’s been interesting watching the public market respond to Silicon Valley’s dry-as-a-Death-Valley-bone earnings calls over the past month.

From Facebook’s wild resurgence to Yahoo’s perplexing movement, shareholders’ reactions have been a fascinating and immediate barometer of how the broader world views our little bubble.

This week, Yelp and LinkedIn reported their Q2 results, and their stock prices grew by leaps and bounds accordingly.

After a quiet, news-free quarter, Yelp showed its hand: a slew of internationalization projects coming to fruition, a strong mobile presence, and a focus on local businesses paid off with a rosy report of growth on all sides — revenues, users, and reviews.

“We had a great second quarter with strong execution in all areas of our business as the Yelp brand becomes increasingly prevalent around the world,” said CEO Jeremy Stoppelman in a statement on the quarterly report.

As of this writing, Yelp stock is trading around $58, up more than 13 percent for the day.

As for LinkedIn, the professional networking company reported strong earnings and user growth for the quarter, beating Wall Street estimates once again.

“Accelerated member growth and strong engagement drove record operating and financial results in the second quarter,” LinkedIn CEO Jeff Weiner said in a statement.

“We are continuing to invest in driving scale across the LinkedIn platform in order to fully realize our long-term potential.”

As of this writing, LinkedIn stock is trading at $236, up 11 percent for today.

Here’s a look at LinkedIn and Yelp, along with data from Facebook and Yahoo in their post-earnings-call weeks. Stock price change is shown as percentage change:

LNKD Chart


VentureBeat is studying mobile marketing automation. Chime in, and we’ll share the data.