NEW YORK (TheStreet) -- Shares of Yelp Inc.
(YELP - Get Report) are lower by -5.62% to $71.35 in pre-market trading after posting second quarter earnings that fell short of analyst forecasts in business accounts growth, despite beating consensus estimates in earnings and revenue, Bloomberg reports.
Analysts at Raymond James (RJF) said the growth in active local business accounts increased about 5,900 sequentially, lower than the expected 7,700 merchant heads, Bloomberg said.
The firm downgraded Yelp this morning to "market perform" from "outperform", citing balanced risk/reward ratio.
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The consumer review company reported net income of $2.7 million, or 4 cents per share, in the second quarter, compared with a loss of -$878,000, or -1 cent per share, a year earlier.
Revenue for the second quarter rose 61.4 percent to $88.8 million from one year ago, beating the consensus estimate of a loss of -3 cents per share on $86.3 million.
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