NEW YORK (TheStreet) -- Yelp (YELP) plummeted 8.8% to $63.78 as of 12:50 p.m. New York time. The online reviews site has traded between $62.75 and $70.93, after opening the day at $70.10. Trading volume has exceeded the three-month daily average of 3.53 million, with 4.55 million shares having changed hands. The company is lagging the S&P 500 which is down 0.55%.
The year's biggest gainers -- primarily Internet and technology stocks, Yelp among them -- are plunging on investor fear over current political uncertainty in Washington. The government shutdown, stretching into its eighth day, is a result of a stalemate among Congressional leaders to agree on a new budget. The fears also stem from concerns the government will default on its debt obligations if it doesn't raise the debt ceiling by Oct. 17.
TheStreet Ratings team rates Yelp Inc as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate Yelp Inc (YELP) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. 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."