U.S. may expand Nvidia and AMD’s 15% China chips deal to other companies
Investing.com - BofA Securities lowered its price target on Yelp (NYSE:YELP) to $30.00 from $31.00 on Friday, maintaining an Underperform rating on the stock. The company, currently trading at $34.18, maintains impressive gross profit margins of 90.88% and shows strong financial health according to InvestingPro metrics.
The firm cited ongoing structural and competitive headwinds facing the review platform, particularly declining user engagement that reflects a broader shift in consumer behavior.
BofA expressed concern about the sustainability of Yelp’s traffic and monetization model, noting that despite efforts to diversify revenue streams and improve efficiency, the company’s lead generation potential continues to deteriorate.
The research note highlighted the growing percentage of AI results in Google (NASDAQ:GOOGL) search as a specific threat, as these are impacting visibility for third-party content including reviews, which could significantly affect Yelp’s ability to attract discovery-driven traffic.
BofA also pointed to widening ROI gaps as AI capabilities become increasingly central to advertising performance, which reduces Yelp’s appeal to advertisers and limits its long-term growth potential.
In other recent news, Yelp Inc. reported a strong financial performance for the second quarter of 2025. The company exceeded expectations with an earnings per share (EPS) of $0.67, which was 31.37% higher than the anticipated $0.51. Additionally, Yelp’s revenue for the quarter reached $370.34 million, slightly surpassing the forecasted $365.69 million. These results highlight Yelp’s ability to outperform analyst predictions despite broader economic uncertainties. The earnings report reveals the company’s resilience in generating revenue and maintaining profitability. Investors and analysts will likely keep a close watch on Yelp’s future performance in light of these results.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.