2024-03-26 01:22:32 ET
Summary
- Yelp's revenue grew 13% in 2023 from 2022, surpassing 2019 level.
- Despite increased user engagement, Yelp faces challenges in attracting new platform users.
- market undervalues Yelp at just 12.3 times PE Ratio, significantly lower compared to peers, offering investment potential.
- Yelp focuses its growth strategy on multi-location businesses and service businesses but has to navigate risks of its dependence over third-party apps.
Yelp Inc. (NYSE: YELP) has reported record revenue and profitability in 2023. Through many metrics, Yelp has shown that it is doing an incredible job maintaining and increasing user engagement, however, other metrics are worrisome in terms of attracting new users to the platform. Despite the concerning factors, as a growing tech company, Yelp's valuation is quite conservative at the moment compared to its peers. As a result, Yelp presents a promising opportunity for investors to capitalize on the trend of increased connection between consumers and local businesses. I recommend "Buy" for Yelp.
Introduction
Yelp, established in 2004, is now a well-known brand and one of the best local business review sites connecting consumers with local businesses....
Read the full article on Seeking Alpha
For further details see:
Yelp's Record Year In 2023 Coupled With Uncertain Growth Path Puts Pressure On Stock Price