Yelp Inc (YELP): Today's Featured Internet Laggard

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Yelp ( YELP) pushed the Internet industry lower today making it today's featured Internet laggard. The industry as a whole closed the day down 1.7%. By the end of trading, Yelp fell $1.87 (-2.8%) to $66.18 on light volume. Throughout the day, 2,395,115 shares of Yelp exchanged hands as compared to its average daily volume of 3,217,400 shares. The stock ranged in price between $65.03-$67.49 after having opened the day at $66.51 as compared to the previous trading day's close of $68.05. Other companies within the Internet industry that declined today were: Friendfinder Networks ( FFN), down 92.8%, Deltathree ( DDDC), down 23.1%, Monster Offers ( MONT), down 6.3% and Angie's List ( ANGI), down 5.9%.

Yelp, Inc. operates Yelp.com, an online urban city guide that helps people find places to eat, shop, drink, relax, and play based on the informed opinions of a community of locals in the know. Yelp has a market cap of $2.7 billion and is part of the technology sector. Shares are up 257.3% year to date as of the close of trading on Friday. Currently there are 9 analysts that rate Yelp a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Yelp as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

On the positive front, Geeknet ( GKNT), up 4.9%, Net Element International ( NETE), up 4.8%, SouFun Holdings ( SFUN), up 4.4% and Innodata ( INOD), up 3.2% , were all gainers within the internet industry with Sohu.com ( SOHU) being today's featured internet industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the internet industry could consider First Trust Dow Jones Internet Idx ( FDN) while those bearish on the internet industry could consider ProShares Ultra Short Technology ( REW).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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