Help! (NYSE: YELP) (NYSE: P)

Yelp Inc (NYSE: YELP), the company that connects people with local businesses and has users contribute reviews of these businesses saw its stock pummelled today. Shareholders were shouting YELP me as the stock went down nearly 15%. The stock is still up 40% from its IPO price of $15 however it is now down 16% from its original after-market price of $25. The after-market is the market that the stock traded on not counting pre-market or the special IPO market. Usually people get a discount when buying an IPO because of the added risk. The company has grown revenue from $20 million in 2009 to over $80 million today. Like Groupon, Zynga, Pandora and other new social media stocks the company is struggling to make money. In that time the loss went from $2 million to $16 million today. Unlike Groupon the company has a very strong and liquid balance sheet but its very small.

The company's valuation is aggressive but perhaps not compared to Pandora (NYSE: P) who also loses money but has a valuation of twice the amount. The Pandora business model also may be less attractive.

Read our Pandora report here.