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David Einhorn’s Big Yelp Bet Pays Off (YELP)
So when Einhorn and Greenlight bought up a huge position in online review platform Yelp (YELP) back
in May of 2016, when the company’s stock was selling for just $21.16, the move made headlines.
According to filings Greenlight Capital made with the SEC in the intervening time, Einhorn began to sell off shares of Yelp
stock very soon after purchasing them, capitalizing on the stock’s quick comeback in the months following his purchase.
Einhorn has been a strong proponent of Yelp for many months now, and it seems
that his wager has finally paid off, as Yelp’s stock price has consistently been significantly higher in the months since May than it was at the time of Einhorn’s original purchase.
In May of 2016, when Einhorn made his initial purchase of the Yelp stock in question, he explained to his investors
that "the stock has suffered due to missed expectations and anxiety about an upcoming negative documentary."
Speculators guess that he may continue to sell off his remaining position, given
that the stock was close to a record high level for the trailing twelve months in the days just before the recent earnings report was revealed, analysts guess that Einhorn may have taken advantage of the good timing to unload a further portion of his position.