What Happened?
Shares of local business platform Yelp (NYSE: YELP) jumped 2.2% in the afternoon session after Jefferies raised its price target for the company from $31.00 to $32.00. Despite the higher price target, the investment firm maintained its "Hold" rating on the stock. This rating suggested that the analyst, John Colantuoni, expected Yelp's shares to perform in line with the overall market. The adjustment signaled a slightly more positive view on the stock's valuation, even though it did not amount to a full upgrade of the recommendation.
After the initial pop the shares cooled down to $30.59, up 2.3% from previous close.
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What Is The Market Telling Us
Yelp’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 7 months ago when the stock gained 10% on the news that the company reported strong first quarter 2025 results that blew past analysts' EBITDA and sales estimates. What's more impressive is that Yelp kept costs in check, letting more of those dollars fall to the bottom line as profits rose faster than sales. Overall, this print had some key positives.
Yelp is down 21.7% since the beginning of the year, and at $30.59 per share, it is trading 25.9% below its 52-week high of $41.25 from January 2025. Investors who bought $1,000 worth of Yelp’s shares 5 years ago would now be looking at an investment worth $1,068.
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