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How Much Rope Will Investors Give Tech IPOs This Time?
CNBC.com | March 02, 2012 | 09:15 AM EST

I mentioned yesterday that the bookrunners had closed the book on Yelp a couple of days ago, a good sign that the local business review website would price above the $12 to $14 a share price talk. Indeed it did — at $15 a share.

Yelp had revenues of $83.3 million in 2011, up 74 percent from 2010, but has never made a profit, with a net income loss of $16.7 million last year. The company will assure everyone it is concerned with growing revenues, not profits. That, of course, was the mantra in the 1990s...until investors tired of it, and the whole tech bubble imploded.

Ancient history? Marc Andreesen doesn’t think so...here’s what he said on our air this morning : “The public market is still completely traumatized by the dotcom crash. I think investors and reporters and analysts and everybody is determined to not get taken advantage of again and that is what everybody who lived through 2000, what they kind of remember.”

The issue is, what is truly unique about the company? What stops anyone from horning in on their territory? What stops ...or Google...or Foursquare?

That question could be asked of several other tech giants, like Groupon. It priced in November at $20 a share, well above the price talk of $16 to $18 a share; it closed yesterday at $19.50.

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