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Yelp beat all analysts’ expectations

Given how strong of an earnings reporting Yelp (NYSE:YELP) released on Tuesday night, it’s no surprise to see its stock climbing higher on Wednesday, up almost 13%.

The company beat on earnings per share and revenue expectations and boosted its next quarter and full-year revenue and EBITDA outlook, all of which topped analysts’ expectations. For that, the stock actually hit new 52-week highs in the session.

Yelp is seemingly back on track, although the stock is still a long ways away from its all-time high near $100. At this year’s low, shares traded for less than $15.

The company has expanded the amount of categories, allows users to review, call and find directions, and make reservations.

Once viewed as an M&A target, those talks have since diminished. At its highs, Yelp commanded a market cap of more than $6.5 billion. Even after Wednesday’s rally, the current market cap stands at just $2.8 billion. So if a larger company felt the need, it could certainly afford a takeout, even with a reasonable premium.

Perhaps some merger or other combination could be in store too, if two or more management teams felt that would be beneficial to the respective businesses.

From Seeking Alpha