3 Numbers to Remember as Yelp Crashes Back to Earth
The fundamentals of a company aren't always represented in the corresponding stock price and, vice versa, the stock price isn't always reflective of a company's true value. In the case of Yelp (NYSE: YELP ) , the company has been firing on all cylinders, generating fast growth and expanding internationally. The stock, however, continues to experience extreme volatility, with price swings of more than 5% in both directions. Lately though, the stock has declined 20% after large gains earlier in the year.
Yelp competes in the heavily competitive online consumer review market and is attempting to grab the $133 billion spent on local advertising, particularly the $7 billion spent on Yellow Pages. It competes against other online companies such as Angie's List (NASDAQ: ANGI ) and Facebook (NASDAQ: FB ) for a share of not only Yellow Pages spending, but billions of other ad dollars spent on local avenues like television, billboards, and newspapers.
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