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Yelp Inc. (YELP) Stock Analysis

SellVALUE-TRAP 2/5Moderate Confidence

Communication Services · Internet Content & Information

Earnings in 7 days (2026-05-07). Expect elevated volatility around the report — consider waiting for post-earnings price action before new entries.

Sell if holding. Analyst target reached at $27.23 — A.R:R is negative (-1.9) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Product: advertising.

Yelp operates a US-focused local business review and advertising platform with 300M+ ratings and reviews. Revenue is substantially all from advertising (display, performance marketing, sponsorships) from SMBs across Services, Restaurants, and Retail & Other categories. The... Read more

$27.23+6.5% A.UpsideScore 5.9/10#11 of 27 Internet Content & Information
Stop $25.31Target $29.00(resistance)A.R:R -1.9:1
Analyst target$25.63-5.9%8 analysts
$29.00our TP
$27.23price
$25.63mean
$22
$31

Sell if holding. Analyst target reached at $27.23 — A.R:R is negative (-1.9) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Product: advertising. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 5.9/10, moderate confidence.

Passes 4/8 gates (clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and death cross (50MA < 200MA) and earnings proximity 7d<=7d. Suitability: aggressive.

Thesis

Rewards
Strong earnings beat streak (3/4)
High-quality business
Attractive valuation
Risks
Concentration risk — Product: advertising
Analyst target reached - limited upside remaining
Leverage penalty (D/E 3.5): -1.5

Key Metrics

P/E (TTM)12.5
P/E (Fwd)7.0
Mkt Cap$1.6B
EV/EBITDA6.7
Profit Mgn9.9%
ROE20.0%
Rev Growth-0.5%
Beta0.48
DividendNone
Rating analysts17

Quality Signals

Piotroski F7/9

Options Flow

P/C41.82bearish
IV82%elevated
Max Pain$45+65.3% vs spot

Concentration Risks(10-K Item 1A)

  • HIGHProductadvertising
    10-K Item 1A: 'We generate substantially all of our revenue from advertising.'

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

10 dimensions · all in-band

GatesMomentum 4.5<4.5A.R:R -1.9=NEGATIVEDeath cross (50MA < 200MA)EARNINGS PROXIMITY 7d<=7dInsider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTSEMI CYCLE PEAK CLEARSuitability: Aggressive
RSI
62 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $24.60Resistance $29.59

Price Targets

$25
$29
A.Upside+6.5%
A.R:R-1.9:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Target reached (-18.1% upside)
! Momentum score 4.5/10 — below 4.5 minimum
! Negative risk/reward — downside exceeds upside

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-05-07 (7d)

Verdict History

reverse chrono — latest first
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Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is YELP stock a buy right now?

Sell if holding. Analyst target reached at $27.23 — A.R:R is negative (-1.9) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Product: advertising. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $25.31. Score 5.9/10, moderate confidence.

What is the YELP stock price target?

Take-profit target: $29.00 (+6.5% upside). Prior stop was $25.31. Stop-loss: $25.31.

What are the risks of investing in YELP?

Concentration risk — Product: advertising; Analyst target reached - limited upside remaining; Leverage penalty (D/E 3.5): -1.5.

Is YELP overvalued or undervalued?

Yelp Inc. trades at a P/E of 12.5 (forward 7.0). TrendMatrix value score: 8.0/10. Verdict: Sell.

What do analysts say about YELP?

17 analysts cover YELP with a consensus score of 2.7/5. Average price target: $26.

What does Yelp Inc. do?Yelp operates a US-focused local business review and advertising platform with 300M+ ratings and reviews. Revenue is...

Yelp operates a US-focused local business review and advertising platform with 300M+ ratings and reviews. Revenue is substantially all from advertising (display, performance marketing, sponsorships) from SMBs across Services, Restaurants, and Retail & Other categories. The company achieved record 2025 annual revenue despite continued weakness in RR&O advertiser demand.

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