Yelp gives back much of its post-earnings surge

|About: Yelp (YELP)|By:, SA News Editor

Up 9.8% yesterday after a Q1 beat and full-year guidance hike prompted multiple upgrades, Yelp (YELP -5.7%) is returning a big chunk of those gains today. The market's negative response to LinkedIn's soft guidance might not be helping.

The hot-button topic of fake Yelp reviews is making headlines again this week. A law firm decided to use earnings day to announce a class-action suit regarding "the true nature" of Yelp's reviews and allegations (discussed in a recent WSJ column) that businesses have been urged to buy ads to suppress negative reviews, among other things.

Meanwhile, a law firm Yelp is suing for allegedly posting fake reviews has filed a motion to put the suit on hold. Defendant Julian McMillan asserts his move "puts the case on pause until November."