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
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.
Yelp facts
| Headquarters (founded) | San Francisco (2004) |
| Market Cap | $381.3 million |
| Industry | Internet software and services |
| Trailing-12-Month Revenue | $83.3 million |
| Management | Co-Founder/CEO Jeremy Stoppelman CFO Robert Krolik |
| Trailing-12-Month Return on Equity | (50.9%) |
| Cash/Debt | $21.7 million / $0 |
| Competitors |
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Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 94% of the 296 members who have rated Yelp believe the stock will underperform the S&P 500 going forward.
Earlier this month, one of those Fools, BFatConservative, succinctly summed up the bear case for our community:
In a crowded IPO offering of knick knack technology offerings, if any of them are susceptible to user decay, over rosy projections, and just general positive speculation it is Yelp.
Quite honestly, I don't believe in the service offering and don't see how this will ever be extremely profitable. I see them on gobbled up eventually by a much larger tech company, and added to a larger service offering.
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