Editor’s Note: Related tickers: Facebook Inc (NASDAQ:FB), LinkedIn Corp (NYSE:LNKD), Yelp Inc (NYSE:YELP), OpenTable Inc (NASDAQ:OPEN), Google Inc (NASDAQ:GOOG), Yahoo! Inc. (NASDAQ:YHOO)
In the recently released earnings report for the three month period that ended on June 30, 2013 Facebook Inc (NASDAQ:FB) had reported stronger revenues and net income to boost investor confidence. The company had presented total revenues at $1.8 billion and had reported net income at the level of $0.19 per basic and diluted share, compared to the analyst estimates at revenues of $1.62 billion and earnings per share at the rate of $0.14 per share. While the company is presently facing competition from many other light weight social networks in the rapidly expanding mobile networks, it is essential that the social networking provider work out to remove the enemy of the display ads from its sites.
Snapchat Is Worth $800 Million Because Facebook Has Basically Turned Into LinkedIn, Says VC Bill Gurley (BusinessInsider)
Snapchat’s $800 million valuation, despite $0 in revenue, stuns many people. Bill Gurley, a VC at Benchmark, and an early-stage investor in Snapchat explained why he thinks the company deserves its valuation. …Part two is about the fundamental belief in Snapchat as a company. It’s growing like crazy because it provides a private forum for people to goof off. Facebook Inc (NASDAQ:FB) used to be that platform, but it’s matured. He says Facebook Inc (NASDAQ:FB) has turned into LinkedIn Corp (NYSE:LNKD). By that, he means you can’t goof off on Facebook Inc (NASDAQ:FB) because everyone sees it. LinkedIn Corp (NYSE:LNKD) is seen as a professional social network that must be kept neat and organized. Facebook Inc (NASDAQ:FB), similarly, needs to be kept tidy since everyone sees it.
Is Yelp’s Acquisition of SeatMe Really A Threat To OpenTable? (Trefis)
Late last week, OpenTable Inc (NASDAQ:OPEN)‘s shares took a beating over trading when the popular rating and review website Yelp Inc (NYSE:YELP) announced its decision to enter into the restaurant reservation industry with the acquisition of SeatMe. [1] The perceived threat to OpenTable Inc (NASDAQ:OPEN)’s position as the leader in the online restaurant reservation space triggered a sell-off among investors leading to a decline in share price from almost $67 before Yelp Inc (NYSE:YELP)’s announcement to the current price of just above $62 – a 7% fall. While OpenTable Inc (NASDAQ:OPEN) has its fair share of competitors providing similar online reservation and seating management services including Urbanspoon, Livebookings, UReserve and CityEats to name a few, Yelp Inc (NYSE:YELP)’s acquisition is believed to hurt OpenTable Inc (NASDAQ:OPEN) on two fronts: not only will Yelp Inc (NYSE:YELP)’s strong online presence elevate SeatMe to the position of a formidable competitor in the industry but OpenTable Inc (NASDAQ:OPEN) will also lose the diners who book tables at restaurants after reading reviews on Yelp Inc (NYSE:YELP) using OpenTable Inc (NASDAQ:OPEN)’s integrated reservation service.
