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REDDIT

Yelp Inc. - Fundamentally Solid with improving Technical's

P
Mar 17, 2026 · 19:35

[Yelp article](https://www.gurufocus.com/news/8623702/yelp-inc-fundamentally-solid-with-improving-technicals)

Yelp connects users to local businesses via 308M+ reviews; 96% revenue from ads/subscriptions.

Strengths & Growth: Strong FCF CAGR 24.9%, revenue 10.9%; AI tools, Hatch acquisition ($270M), data licensing to Perplexity/OpenAI.

Weaknesses/Threats: Fake reviews, Google dominance (73% vs Yelp 6%), AI risks, heavy SBC dilution; short-term ad softness, margin pressure.

Valuation at PE 10.93, fwd 11.46, PEG: 0.29, P/FCF 4.95 is attractive.