Yelp is a high-quality local advertising platform with a 9-out-of-9 Piotroski F-Score, 203% free cash flow conversion, and one of the lowest forward P/E ratios in its peer group at 5.3x, but 95% revenue concentration in advertising, 25% short interest, and a confirmed death-cross downtrend keep the risk-reward unfavorable for new entry at current levels.
Thesis pillars
- Advertising Concentration Platform Risk↓Deteriorating
- 25pct Short Interest Quality Squeeze Setup↓Deteriorating
- Death Cross Negative Momentum↑Improving
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Feb 27, 2026· older than 90 days
Yelp Inc. (YELP) Stock Analysis
Recovery setup · Inst Constrain edge
Communication Services · Internet Content & Information
Sell if holding. Analyst target reached at $22.05 — A.R:R is negative (-0.4) — 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 revenue (95.0%).
Yelp operates a U.S.-focused consumer review platform connecting users with local businesses across more than 300 million ratings and reviews. Advertising represented 95% of total revenue in 2025, sourced from CPC ads, business page upgrades, and multi-location campaigns. The... Read more
Sell if holding. Analyst target reached at $22.05 — A.R:R is negative (-0.4) — 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 revenue (95.0%). Chart setup: Death cross but MACD improving, RSI 59. Score 6.2/10, moderate confidence.
Passes 4/8 gates (positive momentum, clean insider activity, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and earnings proximity 0d<=7d. Suitability: aggressive.
About Yelp Inc.
About Yelp Inc.
Yelp's local advertising platform produced record annual revenue in 2025, with advertising contributing 95% of total revenue through CPC-priced auctions and direct multi-location campaigns. The company's review archive surpasses 300 million ratings across local business categories, accumulated since Yelp's founding more than 20 years ago. The platform is primarily U.S.-focused, serving consumers searching for local businesses across a broad range of categories.
Yelp earns through three primary sales channels: a Local sales team responsible for businesses with fewer than 10 locations (historically the largest advertising revenue share, now nearly half), a Self-serve platform where businesses buy CPC ads and page upgrades directly, and a Multi-location channel targeting businesses with 10 or more locations. Advertising is priced through an automated auction that weighs advertiser budgets against predicted consumer traffic and relevance signals. Subscription and data-licensing products — including Yelp Guest Manager for restaurants and data licensing to partners such as Sprinklr and Chatmeter — generate the remaining 5% of revenue. Transaction revenue flows primarily through the DoorDash partnership, the largest by both transaction volume and revenue per the 10-K. Google is identified as the most significant source of traffic to the platform, and Meta is separately named as a competitor with the financial resources to gain local advertising share.
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Yelp's dependence on Google as its most significant traffic source represents an asymmetric structural risk: algorithm changes and Google's promotion of its own local products have already reduced Yelp link prominence, and AI-generated search responses placed above organic results may further weigh on traffic in 2026. Advertising revenue from the Restaurants, Retail & Other category declined 6% year over year in 2025, and paying advertising locations in RR&O fell 3%, driven by the challenging macro environment those businesses face. With 95% of total revenue tied to advertiser activity, platform-level traffic erosion and category-specific spending weakness compound each other.
See also: Communication Services · Internet Content & Information
From Yelp Inc.'s most recent 10-K filing, extracted June 16, 2026.
Recent developments
updated Oct 29, 2026Recent Developments — Yelp Inc.
Latest news
- NEWS YELP or RELX: Which Is the Better Value Stock Right Now? - Yahoo Finance — Yahoo Finance Oct 29, 2026 neutral
- NEWS Yelp (YELP) Expected to Beat Earnings Estimates: Should You Buy? - Yahoo Finance — Yahoo Finance Oct 29, 2026 positive
- NEWS Yelp (NYSE:YELP) Stock Rating Upgraded by Zacks Research - MarketBeat — MarketBeat Oct 29, 2026 positive
- NEWS YELP Q3'26 Earnings: revenue estimate is 368.92M USD - TradingView — TradingView Oct 29, 2026 neutral
- NEWS Yelp (YELP) Projected to Post Quarterly Earnings on Thursday - MarketBeat — MarketBeat Oct 29, 2026 neutral
Latest item Oct 29, 2026 · Generated 2026-11-05T11:34:09Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHProductadvertising revenue95%10-K Item 1: 'advertising accounted for the vast majority of our revenue during the year ended December 31, 2025, contributing 95% of our revenue'
Material Events(8-K, last 90d)
- 2026-04-29Item 5.02MEDIUMSam Eaton stepped down as CTO effective June 30, 2026, after more than 13 years with Yelp. Alex Levy, SVP Engineering, appointed as successor CTO. Clean handoff.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
1 floor-breaker
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $22.05 — A.R:R is negative (-0.4) — 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 revenue (95.0%). Chart setup: Death cross but MACD improving, RSI 59. Prior stop was $20.51. Score 6.2/10, moderate confidence.
Analyst target $20.66 reached (−6.3% from $22.05); no take-profit level is published. Prior stop was $20.51. Stop-loss: $20.51.
Concentration risk — Product: advertising revenue (95.0%); Analyst target reached - limited upside remaining; Sector modifier (Communication Services): -0.8.
Yelp Inc. trades at a P/E of 10.6 (forward 5.7). TrendMatrix value score: 8.4/10. Verdict: Sell.
17 analysts rate YELP, with a consensus score of 2.6/5. 8 analysts publish price targets averaging $24.
What does Yelp Inc. do?Yelp operates a U.S.-focused consumer review platform connecting users with local businesses across more than 300...
Yelp operates a U.S.-focused consumer review platform connecting users with local businesses across more than 300 million ratings and reviews. Advertising represented 95% of total revenue in 2025, sourced from CPC ads, business page upgrades, and multi-location campaigns. The company's proprietary content is increasingly licensed to AI platforms and enterprise partners.