Tuesday, June 10, 2014

Why Yelp Is Worth Every Penny


The shift to mobile search is expected to have a profound impact on paid search. No longer are users searching only within browsers. Consumers now search directly in mobile apps like the one from Yelp (NYSE: YELP  ) . The shift could have a profound impact on dominant paid search leader Google (NASDAQ: GOOG  ) (NASDAQ: GOOGL  ) .

Research firm eMarketer estimates that mobile will account for roughly 86% of digital ad search by 2018,  with Google maintaining a 64.2% market share. While impressive, the market share is expected to drop 18 percentage points from the 2012 level. With an estimated $28 billion up for grabs on mobile search within four years, the market-share gains won't come easy, but here is why Yelp appears worth every penny of its current $4.7 billion market cap.

Read the full article here.


Disclosure: Long YELP. Please read the disclaimer page for more details.

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