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Yelp (YELP -6.9%) has sold off as Facebook (FB -2%) shows off Graph Search; investors seem to to...

Yelp (YELP -6.9%) has sold off as Facebook (FB -2%) shows off Graph Search; investors seem to to be fretting Yelp traffic will be hurt as Facebook's tool is used to search for businesses a user's "friends" have visited/liked. However, Graph Search is far from a direct rival. Google (GOOG -0.2%) has slipped a little after Mark Zuckerberg notes Bing (MSFT) will be a fallback option for searches. Zuck: "Graph Search is a really big project that will take years and years to index the whole map and the graph" (live blog)
Comments (7)
  • Obviously word of mouth is the best kind of advertising. YELP's rating system is not honest, as many small business owners will attest. Paying to have your business rated 5 stars is misleading and fraudulent.
    15 Jan 2013, 02:08 PM Reply Like
  • This shouldn't have much impact short or long term, as developing the whole map and graph will, as claimed, take years, and, by then, it is likely the privacy concerns and other steps Facebook has taken will drive users away. When Facebook loses novelty value, like MySpace did, it won't matter.
    15 Jan 2013, 02:40 PM Reply Like
  • Yelp will continue to be a roller coaster ride as more sophisticated competitors take market share. However, this concern about FB is merely a head fake compared to the bigger problems with Yelp's overall business model that will ultimately send it into the dumpster.
    15 Jan 2013, 03:40 PM Reply Like
  • Facebook will be nothing in 10 years. It has no moat.
    15 Jan 2013, 07:08 PM Reply Like
  • Though I would agree that they could be wiped out by the next new thing, the fact that everyone and their mom (literally) uses Facebook is in fact something of a moat. If you want an example, just look at Google +: plenty of money and brand recognition, yet completely failed because people realized that everyone else is on Facebook.
    15 Jan 2013, 11:03 PM Reply Like
  • Facebook provides no value except a way for people to watch what others are doing and try to impress their friends by putting the most on their page or wall. It's highschool all over again

     

    Think of how little Amazon actually reports in profit and they are the biggest e-commerce site in the world. Compare facebook, which does basically nothing except create a 'hangout' and it is easy to see that Facebook will fall into nothing.
    16 Jan 2013, 09:31 AM Reply Like
  • Bing as a back-up. Did everyone catch this revelation? Mr. Softee was slowly working behind the scenes to swipe market-share away from the mighty behemoth. FTC or not, the empire is losing ground to the waking giant. Kah-Ching!
    16 Jan 2013, 07:54 AM Reply Like
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