Cramer Eyes HomeAway Inc. (AWAY) and Yelp (YELP) as Future Brands

Cramer mentioned about future brands in his show on August 12, 2014. In an attempt to find the best investment options for future, Jim Cramer placed his bets on HomeAway, Inc. (NASDAQ:AWAY) and Yelp Inc (NYSE:YELP). As per Cramer’s idea, Internet is a relatively young industry with the potential to offer extraordinary results in the upcoming years. He further mentioned that powerful brands often receive a similar response for their stocks and sell at a premium rate.

HomeAway (AWAY)

HomeAway, Inc. (NASDAQ:AWAY) is a leading player in vacation rental industry and the company released its second quarter 2014 earnings on July 24, 2014. HomeAway, Inc. (NASDAQ:AWAY) posted revenue of $114 million with a 31.9% year-over-year growth and it was comparatively higher than revenue of $87 million for the same quarter last year. HomeAway, Inc. (NASDAQ:AWAY) reported adjusted EBITDA of $33 million with adjusted earnings of $14.3 million or 15 cents per share.

The company is aiming at revenue of $114 million to $116 million for the next quarter. Cramer said,

“The Company lists vacation homes you can rent for short periods of time, aggregating a very fractured market. And I think that would be the ideal next acquisition for Priceline as an alternative to”


Yelp Inc (NYSE:YELP) is another brand with a positive future and it is an online portal to post reviews of stores, restaurants, hotels, and properties. Cramer has an intuition that Yelp Inc (NYSE:YELP) might become the next Yellow Pages in terms of reach and returns.

He added, “Yelp stock were to go down, I think the company would be snapped up by someone looking to own the online authority in dining and hotels.”

Yelp Inc (NYSE:YELP) reported net revenue of $88.8 million with a 61% growth compared to the same quarter last year. The company improved on its net income with $2.7 million or 4 cents per share. The site has more than 138 million unique visitors every month and is expected to grow at an exponential rate.


This article has been written by Prakash Pandey and edited by Serkan Unal.


“Tesla Motors (TSLA), Netflix (NFLX) and Amazon (AMZN): Cramer Believes On These Brands”

10 Largest Cattle Producing States in the US


Warren Buffett's Best Picks

Warren Buffett's these stock picks will crush the market over the next 12 months. Get our report FREE by becoming a member now