Buy, Sell, or Hold: Yelp
Shares of social reviewer Yelp have been on a run so far this year, tapping all-time highs near $60 per share. That rally has translated into frothy valuation figures, as investors are now banking on major growth in the years ahead. The mobile business continues to grow, but Yelp's advertising business is far from immune.
In fairness, Yelp has defended itself well against the likes of Google , which tried to acquire Yelp years ago for much less. Even though Yelp has some legitimate opportunities, the valuation just seems too high relative to the growth that Yelp will need to put up.
In the following video, Fool contributor Evan Niu, CFA, and Eric Bleeker, CFA, express skepticism over Yelp at the current prices.
The tech world has been thrown into chaos as the biggest titans invade one another's turf. At stake is the future of a trillion-dollar revolution: mobile. To find out which of these giants is set to dominate the next decade, we've created a free report called "Who Will Win the War Between the 5 Biggest Tech Stocks?" Inside, you'll find out which companies are set to dominate and give in-the-know investors an edge. To grab a copy of this report, simply click here -- it's free!
The article Buy, Sell, or Hold: Yelp originally appeared on Fool.com.
Eric Bleeker, CFA, has no position in any stocks mentioned. Fool contributor Evan Niu, CFA, owns shares of Apple. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple, Google, and Microsoft. 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 Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.