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Social Media Smackdown YELP, GRPN, ZNGA +Video

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decline April 17, 2012 (Chinavestor) Groupon Inc, (NASDAQ:GRPN) continues it's downtrend while Yelp Inc, (NASDAQ:YELP) stays sideways. Many investors believe Yelp will began taking some of Groupon's market share in the online coupon business. I would agree, Yelp has a much better business model.

Zynga Inc, (NASDAQ:ZNGA) is also showing some weakness over the last month.

How do these sites make money?
When investing in Social Media Sites it's important to know where their revenue comes from.


  • Sponsored Search: local businesses pay Yelp for traffic to their website.
  • Advertisements.
  • Apparel Store.
  • Offers/Deals like Groupon.
Zynga Inc, (NASDAQ:ZNGA)
  • Sale of so-called virtual goods.
  • Advertising.

Groupon Inc, (NASDAQ:GRPN)

  • Sale of coupon deals

Now you can see why I like Yelp Inc, (NASDAQ:YELP) the best. Yelp has spent the time to build customer loyalty, they offer a great free service and they have diversified their revenue stream. A tripple threat in my mind.




"Micah Lamar Co-Founded A social media site for Apple Traders, an independent service not affiliated with Chinavestor."

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