1-Star Stocks Poised to Plunge: 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 (NYS: YELP) has received the dreaded one-star ranking.
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.
Yelpfacts
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 |
Trailing-12-Month Operating Margin | (18.2%) |
Cash/Debt | $130.7 million / $0 |
Competitors | Facebook |
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.
If you want market-thumping returns, you need to protect your portfolio from any undue risk. We've found another tech 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 newTrackPoisedToCAPS account.
The article 1-Star Stocks Poised to Plunge: Yelp? originally appeared on Fool.com.
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Facebook, Google, and TripAdvisor. Motley Fool newsletter services have recommended buying shares of Google and TripAdvisor. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
