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 | $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 |
| Competitors |
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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.
A few months ago, one of those Fools, CrimsonViking, succinctly summed up the bear case for our community:
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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Want to see how well (or not so well) the stocks in this series are performing? Follow the new TrackPoisedTo CAPS account.
