1-Star Social-Media Stocks Set to Slump: Yelp?

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 (YELP 0.60%) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Yelp and see what CAPS investors are saying about the stock right now.

Yelp facts

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 90% of the 367 members who have rated Yelp believe the stock will underperform the S&P 500 going forward.

This past summer, one of those Fools, JaiYen, offered some unique insight into the Yelp bear case:

I am a small business owner and would be quickly bankrupt were I so silly with my ad dollars as to buy into such a flawed model. If I have good reviews, why buy the cow when the milk is free? If I have bad reviews, why highlight my presence on Yelp? It's expensive and a lose, lose proposition for their core small business market. I can personally attest that their strong armed sales tactics and outrageous pricing have been the subject of much ridicule at our local Chamber of Commerce. This is the view from the ground. Anyone buying this stock has their head in the clouds.

If you want market-thumping returns, you need to protect your portfolio from any undue risk. Luckily, we've found another growth play we are incredibly excited about -- excited enough to dub it "The Only Stock You Need to Profit from the NEW Technology Revolution." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.