Yelp stock slumps following premature release of disappointing earnings
Shares in restaurant recommendations service Yelp have taken a pummelling on Wall Street after its disappointing fourth quarter earnings were inadvertently leaked before the close of trade.
A ‘rare’ coding error at PR Newswire saw the results leaked ahead of schedule, taking investors unawares, as they digested a net loss of $22.2m on earnings of $153.7m.
Adding to the sense of unease Yelp also revealed that its chief financial officer, Rob Krolik, would be stepping down, instigating an immediate hunt for a replacement although Krolik will remain in post until then.
Chief executive Jeremy Stoppelman remarked: “In 2016, our priorities are to continue to build our core local advertising business, further increase engagement and awareness and grow transactions.”
During a volatile session Yelp’s stock sank 10 per cent, prompting transactions in the firm to be halted for a while.