Even ANGI has a better approach to monetization, yet trades at lower P/E. Look for YELP to trade down to $15 to $18 a share soon, as the growth story is done. New entrants such as Facebook and Google to reviews spells doom.
Allowing business owners the ability to rate reviewers is the only thing I was looking to hear from YELP, as this would be a differentiated approach to weed out fake reviews and get business owners back interested in possibly paying for ads.
YELP needs to figure out the difference amongst businesses on their platform. They treat all businesses as the local pizza right around the corner. This effect results in reviews from real people with a business relationship (posted good or bad from areas outside the market reach determined by YELP) to be filtered. Such a result, is troubling for nationwide companies, that operate beyond this predetermined reach.
I look forward to others thoughts, I am not a owner of YELP stock and have no plan to be until they clean up their act.
What is happening? Investors were lead to believe of all sorts of synergies that never came to fruition. Management needs to be disrupted, as growth should have occurred by now. Would it not make sense for Google to acquire the leftovers for pennies on the dollar at these levels?