Market Overview

Yelp Plummets on Facebook Social Search

Shares of Yelp (NASDAQ: YELP) plummeted on Tuesday after Facebook (NASDAQ: FB) unveiled its new product, social graphing search.

The new feature will allow Facebook users to search things like, "What Indian restaurants do my friends like?" and receive an exact result. As such, it could pose a threat to the business model of Yelp (NASDAQ: YELP). Yelp's business is based around reviewing restaurants and other entertainment establishments.

LinkedIn (NYSE: LNKD) also dropped, though not nearly as significantly. The social search might be used to help job seekers connect with businesses that are hiring.

Yelp was down over 6 percent on Tuesday.

Posted-In: News Intraday Update Movers Tech

 

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