Yelp Revenues To Increase But Profitability To Decline

Yelp is set to release its Q4 2015 earnings on Monday, February 8th.  Yelp’s stock continues to under-perform the broad market as it did in 2015. Although, the company continues to report good revenue growth, its performance metrics have grown at a decreasing pace — indicating that growth across its businesses is slowing down. Nevertheless, most of Yelp’s growth stems from the adoption of its mobile app. Because user base growth for its app continues, we believe that revenue for the compa...