Yelp Inc (NYSE:YELP) is a good stock to buy for short-term and long-term investors, Charles Payne said in a recent discussion on the Fox Business Network.
The comment about the company comes after it has had a tumultuous previous quarters mainly because of legal troubles.
“I like it for short-term traders. I love it for long-term people,” the Fox Business Network host said.
Payne said that the stock is consolidating at $80 and that he thinks its next leg up would see the stock soar to $120. In his introduction, Payne noted that everyone knows the company but like most hot stocks over the last decade, most people who use the company’s services do not own the company’s stock. He added that he thinks most people do not even know that Yelp Inc (NYSE:YELP) is publicly traded.
The Fox Business Network host mentioned that Yelp Inc (NYSE:YELP) has had a rough summer, mainly because of the lawsuits that the company has been facing. Some of these cases alleged that the company ran an extortion racket exchanging ad dollars for positive reviews being featured on an establishment’s Yelp page. Payne said that the company’s leaders are not obligated to make changes but they should. What really crushed the company recently, he said, is the recent 64 insider sales for 5 million shares.
Nonetheless, Payne’s partners in the discussion do not seem to have the same opinion about the company. For example, Matt McCall, founder of the Penn Financial Group, said that he thinks the company’s valuation is too high as earnings per share for 2016 is projected to be $1.00 making the price-earnings ratio 81.
Furthermore, Tracy Byrnes of Fox Business Network, Kayleigh McEnany who founded Political Prospect and retail analyst Hitha Prabhakar all said that Yelp Inc (NYSE:YELP)’s rating system is broken. The company should fix their review system, the trio said. Prabhakar added that for her to get in on the stock, the company needs to make more money in the mobile side of the business.
Yelp Inc (NYSE:YELP) investors includes Eashwar Krishnan’s Tybourne Capital Management which reported about 2.43 million shares.