Yelp's stock drops 16% in a month despite beating Q4 expectations; cautious guidance for 2025

From Nasdaq: 2025-03-05 23:07:41

Yelp’s stock (NASDAQ: YELP) has dropped 16% in the last month to around $34, underperforming the S&P 500 index. Despite beating Q4 expectations with net revenue rising 6% y-o-y to $362 million and earnings per share at $0.62, Yelp issued cautious guidance for 2025 due to macroeconomic uncertainties. The company projects net revenue between $1.470 billion and $1.485 billion for 2025.

Yelp’s 2024 performance saw a 6% y-o-y increase in net revenue, driven by a 6% growth in advertising revenues. The Services segment achieved an 11% y-o-y growth in advertising revenue, reaching $879 million. Yelp also acquired RepairPal for $80 million in Q4 to enhance its auto services advertising vertical. However, challenges in RR&O categories led to a 3% decline in advertising revenue.

In 2025, Yelp forecasts revenues of $1.5 billion, up 5% y-o-y, with a valuation of $36 per share based on expected EPS of $2.28. The stock has shown volatile returns over the past four years, with the Trefis High Quality (HQ) Portfolio offering a less volatile option that has outperformed the S&P 500.

Yelp’s returns in March 2025 include a -2% month-to-date return, -13% year-to-date return, and a -12% return from 2017-2025. Comparisons with the S&P 500 and Trefis Reinforced Value Portfolio show the stock’s performance relative to its peers. Consider investing with Trefis Market-Beating Portfolios for better returns.



Read more at Nasdaq: What’s New With Yelp’s Stock?