Shares of local business platform Yelp (NYSE:YELP)
fell 7.1% in the morning session after its second-quarter earnings report, which showed a beat on revenue and profit but was accompanied by a cautious outlook for the rest of the year. Although the company surpassed second-quarter revenue and earnings forecasts, its forward-looking guidance raised red flags for investors. Yelp posted Q2 revenue of $370.4 million, a 3.7% year-over-year increase, and earnings per share of $0.67, beating estimates. However, the company's full-year adjusted EBITDA guidance of $355 million at the midpoint fell below analysts' expectations, even as it maintained its full-year revenue forecast of around $1.47 billion. This muted outlook seemingly overshadowed the strong quarterly performance for investors, as the stock traded down after the announcement.
Local business platform Yelp (NYSE:YELP) announced better-than-expected revenue in Q2 CY2025, with sales up 3.7% year on year to $370.4 million. The company expects the full year’s revenue to be around $1.47 billion, close to analysts’ estimates. Its GAAP profit of $0.67 per share was 30.9% above analysts’ consensus estimates.
YELP INC (NYSE:YELP) offers strong earnings growth, solid financials, and reasonable valuation, making it a standout for GARP investors following Peter Lynch’s strategy.
Stocks in the $10-50 range offer a sweet spot between affordability and stability as they’re typically more established than penny stocks.
But their headline prices don’t guarantee quality, and investors should exercise caution as some have shaky business models.
Over the past six months, Yelp’s shares (currently trading at $34.97) have posted a disappointing 13.6% loss, well below the S&P 500’s 5% gain. This might have investors contemplating their next move.
YELP INC (NYSE:YELP) offers strong profitability, a debt-free balance sheet, and an attractive valuation, making it a compelling pick for value investors.
YELP INC (NYSE:YELP) offers strong earnings growth, solid profitability, and an attractive valuation, making it a compelling pick for GARP investors following Peter Lynch’s strategy.
Value investing has created more billionaires than any other strategy, like Warren Buffett, who built his fortune by purchasing wonderful businesses at reasonable prices.
But these hidden gems are few and far between - many stocks that appear cheap often stay that way because they face structural issues.
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at social networking stocks, starting with Yelp (NYSE:YELP).
YELP INC (NYSE:YELP) offers sustainable growth, strong profitability, and reasonable valuation, making it a standout for GARP investors following Peter Lynch’s strategy.
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
A company with profits isn’t always a great investment.
Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential.
Local business platform Yelp (NYSE:YELP) reported Q1 CY2025 results beating Wall Street’s revenue expectations, with sales up 7.7% year on year to $358.5 million. The company expects the full year’s revenue to be around $1.48 billion, close to analysts’ estimates. Its non-GAAP profit of $0.81 per share was 3.1% above analysts’ consensus estimates.
Whether it be online shopping or social media, secular forces are propelling consumer internet businesses forward. Luckily for them, the market seems to believe there is still more growth ahead.
This assumption has helped the industry stand firm over the past six months with a flat return while the S&P 500 shed 1.9%.
Wall Street has issued downbeat forecasts for the stocks in this article.
These predictions are rare - financial institutions typically hesitate to say bad things about a company because it can jeopardize their other revenue-generating business lines like M&A advisory.
According to an insider, Apple Inc. (NASDAQ: AAPL) is making a foray into the $500 billion home services market by leveraging its AI capabilities and deep user data to power in-app bookings via Siri and other interfaces.
YELP INC (NYSE:YELP) shows strong earnings growth, solid financial health, and reasonable valuation, making it a candidate for GARP investors following Peter Lynch's strategy.
The Russell 2000 (^RUT) is packed with potential breakout stocks, thanks to its focus on smaller companies with high growth potential.
However, smaller size also means these businesses often lack the resilience and financial flexibility of large-cap firms, making careful selection crucial.
Looking back on social networking stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Meta (NASDAQ:META) and its peers.
