Friday, May 1, 2015

Does Yelp Need Help?


Summary

  • Yelp reported highly disappointing Q1'15 earnings.
  • The company has several catalysts to ramp up user growth and move away from a dependence on traffic from Google.
  • The stock is suddenly worth only $3 billion and trades at very reasonable multiple of future revenue.
With the stock collapsing to new lows, on the surface it definitely appears that Yelp (NYSE:YELP) needs some help. The consumer review site already has a well-defined Google (NASDAQ:GOOG)(NASDAQ:GOOGL) problem that is a major part of the user growth issue, especially internationally. Now the company outlined an internal sales issue and a disappointment with brand advertising adding to the troubles.


Read the full article on Seeking Alpha.



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



No comments: