Yelp Up After Lockup Expiration

Generally when lockups expire 180 days after an IPO, the stock price falls. Contrary to expectations, Yelp was up as much as 22 percent on the day of its lockup expiration. About 52.7 million shares were freed up today, or seven times the current number of shares available for trading. The fact that no large sales were made by insiders is likely the cause. A large number of Yelp shares had been short sold, and with the lack of a price drop, short sellers could be buying to cover their position.