This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Marissa Mayer Yelped and Got What She Wanted

Stocks in this article: YHOO YELP GOOG

NEW YORK (TheStreet) -- Following a month of rumors, Yahoo! (YHOO) finally announced its deal with Yelp (YELP), bringing Yelp's reviews, business information and star ratings to Yahoo! Search.

Yahoo! announced on its blog (much to no one's surprise, it's a Tumblr blog!) that it's now bringing Yelp's reviews to Yahoo! Search. "Now when you use Yahoo Search to look up a local business in the U.S. on your smartphone, tablet, or PC, you'll see user reviews, business information, and star ratings from Yelp," the company said in the blog post. "We've also added a new photo viewing experience to show high-quality photos from Yelp, other partners, and the businesses themselves."

Shares of Yahoo! were lower in mid-Wednesday trading, off 0.52% to $37.37, while Yelp shares were gaining 3.1% to $92.79.

What Yahoo! is doing by incorporating Yelp into its local search is not only making Yahoo!'s core business (advertising and search) more relevant, it's beginning to build what Google (GOOG) has, with its Knowledge Graph. The Knowledge Graph, essentially the right part of the page, pulls in information from Wikipedia, Google Image Search, Google + posts, and anything else associated with that particular topic, whether it be items to buy, or relevant other searches.

In the fourth quarter of 2013, Yahoo! noted search was the standout performer, as revenue excluding traffic acquisition costs, or TAC, rose 8% to $461 million. Paid clicks, excluding Korea, rose 17% year over year, but the price-per-click fell 3% from the fourth quarter of 2012. Beefing up search can only help Yahoo! in its fight against Google, despite Google owning nearly 70% of the search market in the United States.

By partnering with Yahoo!, Yelp is taking advantage of all the data it has and it can now start putting that to work. In a February note, FBN Securities analyst Shebly Seyrafi said Yelp has a lot of potential ahead of it, following the company's exceptionally strong fourth-quarter results released that month.

"As the company is still only scratching the surface of the tremendous local advertising market opportunity ahead, it is investing aggressively," Seyrafi wrote in the note. Seyrafi rates Yelp "outperform" with a $110 price target.

Not only does the deal make sense from a partner standpoint, it's also beneficial as Yahoo! CEO Marissa Mayer tries to turn core Yahoo! around, a feat which she has previously said would take about three years. With revenue from display meandering, Mayer has mentioned doing revenue-accretive deals if they make sense. "Factoring contacts into our Search offering opens up tremendous opportunities to better answer our users' curiosity and make their daily habits easier," Mayer said on Yahoo!'s fourth-quarter earnings call. "This is a new area of experimentation with lots of room for rapid innovation and we will be investing here."

The images to what the new Yahoo! Search with Yelp integration will look like can be viewed here.

-- Written by Chris Ciaccia in New York

Contact by Email.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs