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Yelp (YELP -3.3%) adds to the losses it saw yesterday following's Facebook's Graph Search launch...

Yelp (YELP -3.3%) adds to the losses it saw yesterday following's Facebook's Graph Search launch thanks to a downgrade to Underperform from Northland's Darren Aftahi. Aftahi declares Graph Search, which has been lauded by some reviewers, to be "highly competitive to Yelp, as the platform provides a unique alternative to local business search." Of course, people have made similar remarks about Foursquare, Google/Zagat, and a few other would-be rivals.
Comments (4)
  • I wouldn't be surprised if FB bought YELP since the user data is needed to make their latest strategy more viable.
    16 Jan 2013, 11:20 AM Reply Like
  • YELP is a dog. The name fits it. This stock will be a penny stock in a few months.
    16 Jan 2013, 12:08 PM Reply Like
  • I personally don't think that this will have any long-lasting affect on Yelp - people visit Yelp to read reviews from people that are NOT their friends - I can pick up the phone or text my friends to see what restaurant they recommend...I don't need to go onto FB to do this. Yelp's customer reviews are the attraction to using their app/site (9 out of 10 consumers currently read reviews before making a purchase decision)- FB Graph will not provide any context other than that my friend "likes" it - maybe their friend owns the club they "like" or they "liked" it 5 years ago in high school and forgot it even existed on their profile. Yelp is a one-stop-shop for reviews, address (and directions), phone number, etc....FB graph just isn't.
    16 Jan 2013, 12:41 PM Reply Like
  • I don't think this FB thing will have a big effect either. In fact, I think all the panic is misplaced. The problem with Yelp is still about core fundamentals. Unprofitable today and selling for -- I kid you not -- a 989.5 P/E ratio on forward earnings estimates, Yelp shares are dramatically expensive. So expensive that the term "overpriced" just can't quite describe the disconnect between this stock's price, and its (minimal) value.
    My advice: There's no use shouting for help if you own this one. With more than two-thirds of Yelp shares sold short already, no one's coming to rescue you. The only thing to do now is sell, and try to save yourself.
    16 Jan 2013, 08:07 PM Reply Like
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