The year has not been kind to Yelp shareholders.
On the year, Yelp’s shares have tanked around 50 percent. Today wasn’t an exception, with the company down more than 9 percent. Today’s big swing comes on the heels of a new way of finding top-rated local businesses through Facebook cropped up on the Internet.
The year has been a rocky one, with plenty of ups and downs — largely in line with the company’s earnings reports, where it has recorded mixed results. Sometimes it beats, sometimes it misses, but each time the stock has swung in dramatic fashion. But the net-net has always been a slow, steady drive down.
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The company — while it has mad SEO game — has started to face increasing competition from other potential avenues for recommendations. And, of course, search on mobile devices is gradually losing its way as more and more people find content on the web through mobile apps, rather than search on mobile devices.
And now it has another 500-pound gorilla in the room to potentially deal with Facebook — one that has a market cap that is orders of magnitude greater and with more resources the local recommendation engine could ever hope to have.