NEW YORK (TheStreet) -- Yelp (YELP) - Get Report shaved off a quarter of its value Wednesday after cutting its revenue guidance and noting advertisers are shifting away from its digital display ads. Twitter (TWTR) - Get Report plunged by double digits after citing lackluster user growth when it reported its quarterly results. Tableau Software (DATA) - Get Report tanked despite beating analysts' earnings estimates.
Yelp plummeted 25.1% to close at $25.11. The company touched on a new 52-week low of $23.66 a share during intra-day trading.
The user-generated local reviews site took a substantial hit after it cut its revenue guidance to $544 million to $550 million for the year, roughly a 5% haircut, according to The Wall Street Journal. Yelp, according to the Journal, is facing increasing competition from the likes of such players as Google (GOOG) - Get Report that has its own local reviews and also is noticing a slowdown in visitors.
Besides the lowered revenue outlook, analysts were also disappointed in its plans to eliminate display advertising and shift its focus to local and native advertisements. Display ads accounted for 6% of its second-quarter revenue and, as a result, the company said it anticipated to take a hit from its elimination in the near term.
"We believe this is the right decision for the long-term success of the company," said Jeremy Stoppelman, Yelp founder and CEO, during the earnings conference call Tuesday after the markets closed.
Twitter tanked 14.5% to finish the session at $31.24.
The micro-blogging site plunged after reporting its second-quarter results that beat analysts' estimates but revealed less than a 3% increase in monthly active users over the previous quarter. In the second quarter, Twitter had 316 million active monthly users, according to an Associated Pressreport.
During the earnings conference call, Twitter's CFO Anthony Noto warned investors that until it reaches the mass market, the company's ability to show "sustained, meaningful growth" in the number of monthly active users on the site is still a ways off, according to the Associated Press.
Meanwhile, at least one analyst cut the price target on Twitter, following its earnings report. Deutsche Bank lowered its Twitter price target to $50 from $60.
Tableau Software plunged 10.6% to end the day at $113.64.
The business intelligence and analytics software maker took a beating, despite beating analysts' second-quarter revenue and earnings estimates and also raising its revenue forecast for the year, according to a Barron'sreport.
Perhaps investors were expecting even more. Cantor Fitzgerald analyst Brian White surmised in a research note, cited by Barron's, that Tableau could be a "victim of high expectations," given the company has to date posted multiple quarters where it exceeded expectations.
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.