Yelp gives back much of its post-earnings surge

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."

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Comments (4)
  • Peter89
    , contributor
    Comments (301) | Send Message
    When people post reviews and they get move to the "filter" section, this rises a flag on Yelp. Now I know why some of my reviews got moved to the "filter" section.
    2 May 2014, 04:10 PM Reply Like
  • Jc3244
    , contributor
    Comments (13) | Send Message
    Why isn't the review issue hitting other sites like TRIP or AWAY or Google, etc. all of whom curate reviews?
    2 May 2014, 05:28 PM Reply Like
  • sdnewstreet
    , contributor
    Comments (4) | Send Message
    I have lived in cities that more like small towns and attract tourists; given my knowledge of many of these establishments, the reviews seem to legit.... Yes, some reviews are "idiosyncratic", meaning, perhaps the consumers personal issues, however, to give oversight to reviews requires extra filtering and then a person looking for content that does what it is supposed to do 1) what was your experience like and 2) what contributed to that experience, not ranting or vague positives.


    Beyond this, if not for Yelp, I would not have found the service that I needed to keep my life together while recovering from an injury and those reviews, plus the search results made a BIG and so far, right on different.


    As with a prior reviewer, the is as much about any of the sites like TRIP, AWAY, etc. For example, this comment will not be posted will default to a filter and "person" who will assess if the content is appropriate, meaning, on point in content versus "attitude".
    3 May 2014, 08:57 PM Reply Like
  • sdnewstreet
    , contributor
    Comments (4) | Send Message
    A postscript: The ability to "moderate" reviews/comments requires staff; the latter cost more money than letting every comment pass through via software, so what has been suggested, is that there is software that can detect a good review, eliminate it and "hold" the business, service "hostage" until they "buy" additional services or sign up. I have no personal experience at that level, however, I would think the later process would be easy to detect by any statistical analysis...
    3 May 2014, 08:57 PM Reply Like
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