Skip to main content

Market Overview

This Yelp Bear Is Worried About Competition

Share:
This Yelp Bear Is Worried About Competition
  • Yelp Inc (NYSE: YELP) shares have declined more than 59 percent year-to-date.
  • Northland Capital’s Darren Aftahi has maintained an Underperform rating on the company, while lowering the price target from $21.50 to $17.75.
  • Aftahi believes that new features added to local search by competitors would intensify the competition for Yelp.

According to the Northland Capital report, Facebook Inc (NASDAQ: FB), Google Inc (NASDAQ: GOOGL) and Amazon.com, Inc. (NASDAQ: AMZN) “have recently added feature sets that we believe are aimed squarely at local search, particularly around small business discovery and commerce.”

The new features focus on improving local search and discovery and include tools to enable easier communication between businesses and consumers. Aftahi believes this makes Facebook and Google very similar to Yelp.

Earlier, Apple Inc. (NASDAQ: AAPL) had added the “swipe right” feature, which had the potential to help increase Yelp’s brand awareness and lead to a near term increase in Yelp app downloads.

However, Aftahi believes that in the long term, this feature “may translate into lower engagement on the Yelp app.”

“With a growing list of alternative means to find local businesses easily, we remain cautious on Yelp’s growth prospects,” Aftahi added.

Image credit: Nan Palmero, Flickr

Latest Ratings for YELP

DateFirmActionFromTo
Apr 2021Evercore ISI GroupDowngradesOutperformIn-Line
Mar 2021CitigroupUpgradesNeutralBuy
Mar 2021Morgan StanleyMaintainsUnderweight

View More Analyst Ratings for YELP
View the Latest Analyst Ratings

 

Related Articles (YELP + FB)

View Comments and Join the Discussion!

Posted-In: Darren Aftahi Northland Capital markets VetrAnalyst Color Price Target Analyst Ratings Tech Best of Benzinga

Latest Ratings

StockFirmActionPT
RIDERF LaffertyDowngrades
RAPTCantor FitzgeraldMaintains71.0
UALCitigroupMaintains67.0
GDOTCitigroupMaintains50.0
VRTXPiper SandlerMaintains261.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com