Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, local business review site Yelp (NYSE: YELP ) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Yelp's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||San Francisco (2004)|
|Market Cap||$1.3 billion|
|Industry||Internet software and services|
|Trailing-12-Month Revenue||$94.2 million|
|Management||Co-Founder/CEO Jeremy Stoppelman
CFO Robert Krolik
|Trailing-12-Month Operating Margin||(18.2%)|
|Cash/Debt||$130.7 million / $0|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 91% of the 300 members who have rated Yelp believe the stock will underperform the S&P 500 going forward.
Like the rest of its social media brethren, Yelp appears to be valued more on eyeballs that profitability in a way that hearkens back to the height of the dot-com bubble. Online advice is a field with stiff competition (TripAdvisor and Google to name a few) and it will be difficult for Yelp to develop a competitive edge and profitability in a sustainable way. I look for the stock to underperform the S&P 500 as it gradually returns to Earth.
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