NEW YORK (TheStreet) -- Yelp (YELP) - Get Report stock is retreating by 27.87% to $24.12 in mid-morning trading on Wednesday, after the company reported its 2015 second quarter earnings results and lowered its 2015 guidance.

Yelp announced a loss of 2 cents per diluted share on revenue of $133.91 million for the second quarter of this year.

Analysts had estimated for earnings of 1 cent per share on revenue of $133.48 million for the 2015 second quarter.

TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio had this to say about Yelp, "They have no game. It was a terrible embarrassing call."

For the second quarter of 2014, the company had reported earnings of 4 cents per diluted share on revenue of $88.79 million.

Yelp now expects revenue for fiscal 2015 to be in a range of $544 million to $550 million, down from the previous guidance of a $574 million to $579 million range.

Furthermore, Yelp announced that chairman Max Levchin has resigned in order to pursue other interests.

Levchin, who provided seed capital when Yelp was founded, will focus on his role as CEO of Affirm, a financial startup.

Yelp will discuss who will replace Levchin at its September board meeting.

Additionally, Yelp was downgraded to "market perform" from "outperform" at JMP Securities due to its earnings results and lowered outlook.

Analysts at Topeka Capital Market downgraded the company to "hold" from "buy" and lowered their price target to $30 from $60.

SunTrust also lowered its price target to $37 from $52 on Yelp stock, but maintained its "buy" rating.

Insight from TheStreet's Research Team

Jim Cramer, also commented on Yelp's earnings results in a post on Real this morning. Here's what Cramer had to say about the company:

Yelp's actually doing badly, missing numbers, not growing, getting out of advertising campaigns and going the way of Myspace.

Yelp made you feel that Jeremy Stoppelman is desperate for a banker to put some lipstick on this pig, to hark back to the bad old days. He's got no game domestically and less game internationally, giving away a free service that he wants advertisers to pony up for who don't need it and can't possibly demonstrate a rate of return for their investment.

...I see little hope that Yelp can turn around without massive layoffs and much cheaper ad rates, plus something that's far more pro-user than just constantly slotting whoever is paying up for their reviews. I think the model of advertising in order to mitigate bad reviews isn't paying off anymore, because there are too many reviews everywhere anyway.

-Jim Cramer's 'Twitter and Yelp Are in Trouble' originally published on 07/29/2015 on

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