Why Yelp Stock Tanked Today
Shares of Yelp (NYSE: YELP) have tanked today, down by 14% as of 12:20 p.m. EDT, after the company reported second-quarter earnings. The results topped expectations, but the local business review site continues to feel the impact of the COVID-19 pandemic.
Revenue in the second quarter fell by nearly a third to $169 million, which was still better than the $153 million in sales that analysts were expecting. That translated into a net loss of $24 million, or $0.33 per share, also better than the $0.51 per share in losses that Wall Street was modeling for. Adjusted EBITDA plunged 80% to $11 million. The tech company, which relies primarily on advertising revenue from small local businesses, finished the quarter with $526 million in cash.
Image source: Yelp.
Source Fool.com
