Buy, Sell, or Hold: Yelp

Shares of social reviewer Yelp  (NYSE: YELP  ) have been on a run so far this year, tapping all-time highs near $60 per share. That rally has translated into frothy valuation figures, as investors are now banking on major growth in the years ahead. The mobile business continues to grow, but Yelp's advertising business is far from immune.

In fairness, Yelp has defended itself well against the likes of Google  (NASDAQ: GOOGL  ) , which tried to acquire Yelp years ago for much less. Even though Yelp has some legitimate opportunities, the valuation just seems too high relative to the growth that Yelp will need to put up.

In the following video, Fool contributor Evan Niu, CFA, and Eric Bleeker, CFA, express skepticism over Yelp at the current prices.

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  • Report this Comment On September 09, 2013, at 11:22 AM, investahman wrote:

    I have seen stocks like this get a lot of cap money and do good but I also seen some take a nose dive its no Google or Yahoo the top two on the net, stocks are like waves some small some large and some crash on shore like a tsunami. anybody know if Idearc is still around?

  • Report this Comment On October 13, 2013, at 12:17 PM, webpicasso12 wrote:

    Really this is first class site thanks you for this post. <a href=" http:// www.buybusinessreview.com/">Buy Yelp Review</a>, your rating on Yelp will improve. Each review we provide will be given 4 or 5 stars and be visible on Yelp for potential customers to read. As your business gains in popularity, your listing on Yelp will receive more views which will lead to more business

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