Last Week's Biggest Stock Movers: Yelp Jumps; Rosetta Sinks

Updated
Yelp Inc. Illustrations Ahead of Earnings Figures
Andrew Harrer/Bloomberg via Getty Images

Plenty of stocks go up and down in any given week. The gainers inspire us to keep investing. The decliners keep greed in check while reminding us about the risks of the equity markets.

Let's go over some of last week's best and worst performers.

Yelp (YELP) -- Up 26 percent last week

Shares of Yelp moved higher on buyout chatter. The website that collects user reviews for local businesses reportedly entered talks with an investment banker to weigh strategic alternatives that could end in a bidding war.

Yelp has been out of favor, hitting a new two-year low a week earlier after posting a poorly received quarterly report. Top-line growth is still strong, however, and Yelp's leadership position makes it a logical acquisition candidate for dot-com giants looking for more skin in local search advertising.

Zynga (ZNGA) -- Up 16 percent last week

The mobile gaming pioneer behind "FarmVille" and "Words With Friends" moved higher after posting a slight year-over-year uptick in bookings and a major shakeup. Zynga will be laying off nearly a fifth of its workforce as its founding CEO returns to the helm.

Zynga will also be scaling back the number of gaming categories that it's presently servicing. One would think that retreating and letting employees go would be negative developments, but Zynga's poor performance since going public four years ago demands the focus that the casual gaming specialist is committing to now.

RetailMeNot (SALE) -- Up 14 percent last week

Online coupon code aggregator RetailMeNot popped after delivering a better-than-expected quarterly report. Revenue and earnings may have posted year-over-year declines of 1 percent to $60.4 million and 15 percent to $0.20 a share, respectively, but analysts were bracing for worse. Wall Street was settling for adjusted net income of $0.15 a share on $58.4 million in revenue.

Skullcandy (SKUL) -- Down 24 percent last week

The maker of edgy headphones slumped after posting quarterly results. Skullcandy may have seen its sales climb 18 percent since the prior year, but it did post an operating loss. Skullcandy's guidance for the balance of 2015 calls for decelerating sales growth, and the midpoint of its profit outlook is just below where the pros are perched.

Windstream (WIN) -- Down 20 percent last week

It isn't easy peddling traditional landline phone service these days, and Windstream continues to go the wrong way. An uptick in broadband customers wasn't enough to offset another large slide in landline accounts.

The drop in traditional telephone lines isn't a surprise, even in Windstream's rural markets. Windstream's earnings and free cash flow fell sharply, leading investors to worry about the sustainability of its hefty dividend yield.

Rosetta Stone (RST) -- Down 11 percent last week

Finally, we have the language-learning software specialist taking a hit after posting another problematic quarterly report. Rosetta Stone has now posted larger losses than analysts have been targeting for four consecutive quarters.

Rosetta Stone's products are holding up well at the education and enterprise level, but it's taking a pounding in its larger consumer business. The likely culprit is the growing availability of free and cheap language-learning solutions.

Motley Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends RetailMeNot, Rosetta Stone, Skullcandy, and Yelp. The Motley Fool owns shares of RetailMeNot and Rosetta Stone. Try any of our Foolish newsletter services free for 30 days. Check out our free report on one great stock to buy for 2015 and beyond.

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