Worst Tech Stocks to Buy: Yelp (YELP)
Yelp Inc (NYSE:YELP) is a useful service with a pretty strong brand name. But these factors might not be enough given the competitive environment.
Alphabet Inc (NASDAQ:GOOGL) has been making a play for the review market, and Facebook is doing the same. There’s also IAC/InterActiveCorp (NASDAQ:IAC), which has agreed to purchase Angie’s List Inc (NASDAQ:ANGI) and crowd the space.
These companies are taking a toll on Yelp, which posted horrible results in its latest quarter. Revenues climbed 24% to miss expectations, the net income line was red and the company provided tepid guidance.
Expect the deceleration to continue. Full-year revenues are forecast to range from $850 million to $865 million, while Wall Street pros were looking for a much more robust $888.7 million.
Could Yelp be bought out? Maybe, but that’s a dicey wager. As seen by other troubled digital companies such as Groupon Inc (NASDAQ:GRPN), tech “bargains” can keep getting cheaper but fail to bring in a serious buyer.