Stock of the Day

November 17, 2020

Yelp (YELP)

$26.27
-$1.12 (-4.1%)
Market Cap: $1.51B

About Yelp

Yelp Inc. operates a platform that connects consumers with local businesses in the United States and internationally. The company's platform covers various categories, including restaurants, shopping, beauty and fitness, health, and other categories, as well as home, local, auto, professional, pets, events, real estate, and financial services. It provides free and paid advertising products to businesses, which include cost-per-click advertising and multi-location Ad products, as well as enables businesses to deliver targeted advertising to large and high-intent audience; and business listing page products. The company also offers other services comprising Yelp Guest Manager, a subscription-based suite of front-of-house management tools for restaurants, nightlife and certain other venues, which include online reservations, a waitlist management solution that allows consumers to check wait times and join waitlists remotely, as well as through hostless kiosks, and seating and server rotation management tools; Yelp Knowledge program that offers business owners local analytics and insights through access to its historical data and other proprietary content; and Yelp Fusion, which offers free access to various basic information through publicly available APIs, and paid access to content and data for consumer-facing enterprise use. In addition, it provides content licensing, as well as allows third-party data providers to update and manage business listing information on behalf of businesses. Further, the company offers its products directly through its sales force; indirectly through partners; and online through its website and business app, as well as non-advertising partner arrangements. It has partnership with Grubhub for providing consumers with a service to place food orders for pickup and delivery. The company was incorporated in 2004 and is based in San Francisco, California.

Today's Trend

Yelp Inc. (NYSE:YELP) is trading lower amid a mixed batch of analyst estimate revisions from Zacks Research and a largely headline-driven news flow. The stock is also still below its 50-day and 200-day moving averages, which can add pressure when sentiment is soft.

  • Zacks Research raised several forward earnings estimates for Yelp, including Q4 2026, Q3 2027, Q4 2027, and FY2027, suggesting improved longer-term profit expectations.
  • Yelp received some favorable brand exposure after one of its Southern California sports bars made Yelp’s Top 100 sports bars list for 2026, highlighting continued relevance of the Yelp platform. Article: Studio City pub makes Yelp’s Top 100 sports bars for 2026
  • Zacks Research reiterated a Hold rating on Yelp, indicating analysts are not taking a strongly bullish stance despite some higher estimates.
  • Some near-term estimates were cut, including Q2 2026 EPS, Q3 2026 EPS, Q2 2027 EPS, and FY2026/FY2028 earnings, which may weigh on investor sentiment around the company’s growth trajectory.

Overall, Yelp (NYSE:YELP) looks pressured because investors are balancing a few higher long-term earnings estimates against several downward revisions for upcoming quarters and a still-cautious analyst rating.

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