YELP - Yelp: Be Patient For This Stock To Unlock Its Value

2024-05-21 05:07:25 ET

Summary

• Yelp's market value has dropped by nearly 20% this year as investors favor riskier stocks, but it is not a value trap due to its growth initiatives in Home Services.
• The restaurant industry is facing challenges, but Yelp's growth in the Services space (especially with the launch of a new AI-driven project matching feature) is compelling.
• Despite a slowdown in restaurant advertising, Yelp's management is confident in its strategy and expects its full-year net revenue to be within the projected range.
• YELP stock trades at an attractive 6.6x multiple of FY24 adjusted EBITDA expectations.

Yelp ( YELP ) has had a tough run this year. Amid sharp market rallies across sectors, the restaurant and local business reviews site has shed nearly 20% of its market value, as investors chased riskier and higher-growth stocks and shied away from potential value traps....

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