Yelp’s share price jumped from fifteen dollars per share to twenty-five dollars in what became the biggest single-day increase on the day of IPO for any web company in 2012. Yelp got heavy criticism for not even being profitable, despite having been around since 2004. However, most of the social media response and much of the traditional media coverage was positive.
In this week’s Future of Engagement, host Murray Newlands looks at how effective social media campaigns can benefit companies like Yelp, and what effect the positive social media coverage may have had on Yelp’s stock price:
[youtube=http://www.youtube.com/watch?v=AtZKFDLQfCA]
Highlights
- Yelp’s IPO received intensely positive social media coverage…
- Yelp’s stock price rose 60% on day one but Yelp doesn’t make any money…
- Which led to speculation that it went public because venture capital is drying up…
Graphs courtesy of Alerti Social Media Monitoring and Management
Samuel July 12, 2012 at 9:08 pm
Social media starting to influence well beyond its sphere. It just did through Yelp’s IPO.
Social media can be very powerful and it would be nuts if you don’t take advantage of it. I should more myself.
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Jacko April 2, 2012 at 8:39 am
Very good article. Interesting topic.
You know I have long wondered, “How do we know the same computers that run the internet spam bots don’t also control the Financial ETF’s that buy and sell the majority of stocks on wall street?”
Ever heard of pump and dump? This is a strategy in stock promotion/investing where people are persuaded into buying a stock due to lots of promotion and then the stock is sold or shorted making the promoters money.
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Tinh April 2, 2012 at 8:19 am
I think when social media is proving that it works and it can create money, it will be a good thing to invest in. Facebook is projected to pass Google’s revenue soon and its stock will be much hotter then
Nice analysis
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