4 ms·
The title uses the word "high-tech", while the article uses "Hot startup", I doubt if Yelp can still be classified as a "Hot startup". Answering whether Yelp is
by aub3bhat 11y ago
The title uses the word "high-tech", while the article uses "Hot startup", I doubt if Yelp can still be classified as a "Hot startup". Answering whether Yelp is truly "high-tech" does not matters since the article makes no assertion that relies on assuming Yelp to be "High-Tech".
The article is selling standard business analysis, packaged as if it was some kind of brilliant visionary insight. This "Retro analysis"completely ignores new streams of businesses that Yelp is getting into such as Food delivery. These typically have much higher revenue albeit at lower margins, than just advertising. Not factoring it is a gross miscalculation. The article also fails to compare Yelp with Grubhub. Which would have produced a much more realistic expectation.
The article reminds me of this video by Steve Jobs discussing how Marketing & Sales end up destroying companies.
https://www.youtube.com/watch?v=-AxZofbMGpM https://www.youtube.com/watch?v=-AxZofbMGpM
- thesumofall 11y agoI don't think their analysis "ignores new streams of business". They specifically highlight how the different potential markets should be approximated.
- pc86 11y agoNot only that but Yelp "getting into" a new line of business or revenue stream does not mean you get to say "it's a $50 billion market we're getting into so clearly we can add $5 billion to Yelp's value!" Until it's generating something (e.g. cash on the balance sheet or some other tangible benefit) I don't see how it would affect valuation at all.
- deleted 11y ago[deleted]