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 -1.38%) 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 |
$1.3 billion |
|
Industry |
Internet software and services |
|
Trailing-12-Month Revenue |
$121.3 million |
|
Management |
Co-Founder/CEO Jeremy Stoppelman CFO Robert Krolik |
|
Trailing-12-Month Return on Equity |
(26.2%) |
|
Cash/Debt |
$123.1 million / $0 |
|
Competitors |
Yahoo! |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 84% of the 318 members who have rated Yelp believe the stock will underperform the S&P 500 going forward.
Earlier this week, one of those Fools, Clint35, expressed a great deal of skepticism over Yelp's business model:
Maybe I'm old-fashioned but I don't get why anybody needs Yelp. As a consumer I wouldn't depend on a bunch of strangers' opinions to decide where to eat or where to go to have fun. As a business owner I wouldn't pay money to have a company show reviews of a bunch of strangers. How does anybody know if the reviews are reliable or not? What's wrong with traditional advertising? Or having a small website? Or Heaven forbid, word of mouth? In today's modern age people still talk to each other. They also have competition from Google and a few others.
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