YELP

Yelp Inc

TMT


Presented:12/19/2018
Price:$33.86
Cap:$2.81B
Current Price:$34.90
Cap:$2.34B

Presented

Date12/19/2018
Price$33.86
Market Cap$2.81B
Ent Value$3.53B
P/E Ratio18.21x
Book Value$13.39
Div Yield0%
Shares O/S83.08M
Ave Daily Vol2,906,995
Short Int10.27%

Current

Price$34.90
Market Cap$2.34B
Yelp, Inc. hosts an online database of user-generated reviews of local businesses. It provides reviews on local businesses, which include restaurants, boutiques and salons, dentists, mechanics and plumbers. The firm offers multiple free and paid advertising solutions to engage with consumers, including free online business accounts, search advertising and Yelp Deals. The company was founded by Jeremy Stoppelman and Russ Simmons in July 2004 and is headquartered in San Francisco, CA.

Public companies mentioned herein: Alphabet Inc (GOOG, GOOGL), ANGI Homeservices Inc (ANGI), Booking Holdings Inc (BKNG), Cars.com Inc (CARS), Groupon Inc (GRPN), GrubHub Inc (GRUB), Match Group Inc (MTCH), TripAdvisor Inc (TRIP), TrueCar Inc (TRUE), Twitter Inc (TWTR), Wendy’s Co/The (WEN), XO Group (XOXO), Yelp Inc (YELP)

Highlights

Despite an “extremely negative” perception of Yelp (YELP) stock in the market, the presenter is long due to optimism around the top-line growth opportunity in the local business reviews segment. Shares are down ~33% from 52-week highs and ~19% YTD. In addition to the potential for top-line growth, he sees upside for EBITDA, and EBITDA margin expansion, on the back of user engagement growth and an ad sales strategy shift. He views the current valuation (7x EBITDA) as an attractive entry point for the stock, as it has a reasonable growth story and is trading at a discount to its peers.

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Idea Discussion

Commentor 1 - 2 weeks ago

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