Note: I have written about Yelp previously, investors should see this as an update to my earlier article on the company
Since my last article on Yelp (YELP), the company has struggled to kick on share price wise. Now, down 12% since then. Yelp’s reliance on small businesses has hit the company hard over the last few months. While the greater transition to online booking will benefit the company, the ties to the restaurant and retail sectors are simply too strong, and in the current environment, that is not a great position to be in. While some may argue that Yelp is ‘cheap’ at current levels, investors must look forward and wonder where the future growth catalysts will actually come from.
Small businesses still struggling
Yelp’s revenues remain small-business focused, as they look to sell advertising space to local businesses so they can drive greater traction into stores. While previously