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 1.46%) 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
|
Headquarters (Founded) |
San Francisco (2004) |
|
Market Cap |
$1.2 billion |
|
Industry |
Internet software and services |
|
Trailing-12-Month Revenue |
$121.3 million |
|
Management |
Co-Founder/CEO Jeremy Stoppelman |
|
Trailing-12-Month Return on Equity |
(26.2%) |
|
Cash/Debt |
$123.1 million / $0 |
|
Competitors |
Facebook (FB 8.49%) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 85% of the 324 members who have rated Yelp believe the stock will underperform the S&P 500 going forward.
A few months ago, one of those Fools, All-Star BlacknGold, succinctly summed up the Yelp bear case for our community:
Still not [making money], although plenty of people will applaud their first quarterly profit and point to it as a sign of better things to come. Think of it like this: Yelp is miles from making $10 million of net income in a 12 month period. Even if that were ever to happen would the company command a market cap anywhere near $1 billion? This valuation just defies logic.
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Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.
