Yelp Soars, Facebook Climbs: Tech's Big Winners (Update 1)

Tickers in this article: FB MU SNDK YELP
(Updates from 11:54 a.m. ET with closing information.)

NEW YORK ( TheStreet) -- Yelp shares soared Thursday, rising 21.96% to $50.98 after its quarterly results and outlook beat Wall Street estimates.

"We had a great second quarter with strong execution in all areas of our business as the Yelp brand becomes increasingly prevalent around the world," said CEO Jeremy Stoppelman.

Revenues rose 68% to $55 million, topping the $53.3 million estimate from analysts according to Thomson Reuters . Net losses for the quarter were $0.9 million, or 1 cent per share, down from $2 million, or 3 cents per share, during the same quarter last year, and well below analysts' estimate of a loss of 4 cents per share. The website, which reviews local businesses, is planning to expand into restaurant bookings, event planning, and payments.

For the third quarter, Yelp expects revenue between $58 million and $59 million, with adjusted EBITDA between $7.5 million and $8 million. Analysts surveyed were looking for $57 million. For fiscal 2013, Yelp anticipates revenue will be between $222 million and $224 million, with adjusted EBIDTA between $27 million and $28 million.


Shares of Micron Technology rose 1.74% to $13.47 following the completion of its $2 billion acquisition of Elpida Memory.

Elpida, the Japan-based manufacturer of computer memory chips, filed for bankruptcy protection in February 2012; its $5.6 billion in debt made it the biggest ever bankruptcy by a Japanese manufacturer. The deal will increase Micron's current manufacturing capacity by approximately 45%.

"We are pleased to bring together Elpida with Micron to form the industry's leading pure-play memory company," said Micro CEO Mark Durcan in a statement. "This combination will result in enhanced R&D and manufacturing scale, significant cost and production synergies and a stronger memory product portfolio to provide solutions to our customers."


SanDisk shares rose 4.28% to $57.48 in Thursday trading after the company's announcement Wednesday evening that it would offer its first dividend payment late this month and added $2.5 billion in new share buybacks.

The 22.5 cent dividend per share per quarter will be paid on August 30 to holders of record as of August 12. Based on Wednesday's close of $55.12, the payout represents a 1.6% yield.

Of the $2.5 billion addition to the buybacks, $1 billion will be purchased through an accelerated share repurchase during the current quarter with an unnamed financial institution.

"Today's announcements underscore our confidence in the company's business and our commitment to share our success with our shareholders," said SanDisk CEO Sanjay Mehrotra. "The dividend provides immediate and ongoing returns to our shareholders, and we believe that utilizing our cash for share repurchases will add significantly to long-term shareholder value."


Facebook's shares continued to climb, rising 3.40% to $38.05, exceeding its $38 price during its disastrous IPO in May 2012 for the first time.