Robinhood, MercadoLibre Win Buy Calls as Yelp Faces Flat Sales at $23.65
Updated
Updated · Yahoo Finance · Aug 26
Robinhood, MercadoLibre Win Buy Calls as Yelp Faces Flat Sales at $23.65
1 articles · Updated · Yahoo Finance · Aug 26
Summary
$100.8 billion Robinhood and $101.2 billion MercadoLibre were singled out as top consumer-internet buys, while Yelp was flagged as a stock to avoid.
Robinhood's case rests on 91.2% annual ARPU growth, 395% annual EPS growth and strong free cash flow, pointing to sticky users and room to fund growth or return capital.
MercadoLibre was backed by 63.1% annual ARPU growth over two years, 35% annual EPS growth over three years and solid cash generation that supports further investment.
Yelp, valued at $1.29 billion and trading at $23.65, was marked down for just 5.1% annual revenue growth, expected flat sales over the next 12 months and heavy marketing spend.
The calls come as consumer-internet stocks have gained 14.2% in six months versus 10.8% for the S&P 500, even as winner-take-all dynamics raise the cost of picking losers.
Will Robinhood’s rapid evolution into a financial super-app sustain its explosive growth, or are trendy prediction markets masking underlying volatility risks?
Could Yelp's massive local review database and recent AI investments secretly transform this apparent value trap into a lucrative acquisition target?