Why Yelp Is Poised to Keep Plunging
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 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.
San Francisco (2004)
Internet software and services
Co-Founder/CEO Jeremy Stoppelman
Trailing-12-Month Return on Equity
$123.1 million / $0
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.
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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The article Why Yelp Is Poised to Keep Plunging originally appeared on Fool.com.Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of Facebook and Google and has long JAN 2014 $20.00 calls on Facebook. Motley Fool newsletter services recommend Facebook and Google. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.