After a 20% drop this year, Yelp (YELP) - Get Yelp Inc Report shares rose Monday after the online-review company plotted a turnaround from the pandemic and covid-19 vaccines raised hopes of a recovery that could benefit the company, a media report said.
A switch to a do-it-yourself advertising model from a staff of ad-sales people earlier this year is a key change to Yelp's business model, the paper reported.
Almost half of revenue now comes from Yelp's home and local services segment: plumbers, gardeners, electricians, and the like.
"Yelp’s third-quarter results demonstrate our business’s considerable resilience, highlighted by positive year-over-year revenue growth in two key areas of our long-term strategy: home and local services and our self-serve sales channel,” said Co-Founder and Chief Executive Jeremy Stoppelman in November.
After its third-quarter results, Yelp received upgrades from RBC Capital Markets and KeyBanc Capital Markets, Barron's noted.
RBC said "the worst is behind" for Yelp and upgraded its rating to outperform from perform. Analyst Shweta Khajuria has a $34 price target on the stock, Barron's reported.
And Justin Patterson of KeyBanc said covid-19 vaccines are a positive for home service plays like Yelp, suggesting that the consensus forward revenue and margin estimates are too conservative.
This year shares of Booking.com slipped 1.7% while TripAdvisor dropped 14%.