YELP

Rating neutralAI Memo

Yelp

As of 2026-08-26/Confidence medium

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Data freshness

AI Memo

As of 2026-08-26 • Model: RankAlpha Sentiment Codex

Decision Panel

Action, confidence, horizon, and decision blockers at a glance.

Action

neutral

Confidence

medium

Horizon

—

Key catalyst

Q2 beat and narrowed outlook • 2026-08-06

Base target: $25 / p=55% prob

Biggest risk

The core business is growing slowly, EBITDA is declining, local-business conditions remain pressured, and strategic investment may delay margin recovery. Recent insider activity includes dispositions, including a CFO open-market sale [#SEC-FORM4-2026-08-24].

Invalidation

Break below $19 or thesis failure.

What would change my mind?

The Q2 beat, record $33 million of Other revenue, and early AI-product traction support a potential mix-driven re-rating if Yelp Host, Hatch, Assistant, and data licensing scale sustainably [#SEC-8K-2026-08-06].

Research note

Recommendation

neutral

Confidence

medium

As of

2026-08-26

Base target

$25

p=55%

Bull target

$29

p=20%

Bear target

$19

p=25%

Key bullets

Fast scan of bull, bear, and watch items

BullKey bullets

Core advertising and margin pressure
AI and other-revenue monetization
The Q2 beat, record $33 million of Other revenue, and early AI-product traction support a potential mix-driven re-rating if Yelp Host, Hatch, Assistant, and data licensing scale sustainably [#SEC-8K-2026-08-06].

BearKey bullets

AI products and data licensing may not monetize at the expected pace
Adjusted EBITDA decline and investment-related margin pressure
Limited verified post-earnings analyst revision data

WatchKey bullets

Q2 beat and narrowed outlook

Summary

High-level snapshot

Recommendation

neutral

Model confidence

medium

Timeframe

Asset

Equity

Trigger

Base case: $25 (p=55%)

Target spread vs base: +16% / -24%

Scenario probabilities

Bull Target: $29 (p=20%)Base Target: $25 (p=55%)Bear Target: $19 (p=25%)

Commentary

Recent coverage is earnings-driven and directionally positive, but the stored earnings context reported shares at $23.45 versus $25.04 immediately before the print; the RankAlpha anchor later fell to $22.63 on August 26, suggesting the initial reaction did not hold. Analyst revisions and social coverage are unavailable, limiting conviction.

As of 2026-08-26 • Updated bi-weekly / post-earningsSource: Internal modelMethodology

Analyst Summary

Thesis highlights from the latest analysis

Bull Case

Bear Case

Drivers

Scannable catalysts and supporting factors

Core advertising and margin pressure
AI and other-revenue monetization

Scenarios

Bull Target (Scenario probability)

$29 / p=20% prob

Base Target (Scenario probability)

$25 / p=55% prob

Bear Target (Scenario probability)

$19 / p=25% prob

Analysis 2026-08-26 · RankAlpha Sentiment Codex

Analysis reference price unavailable. Targets are shown without scenario returns.

Sentiment & Exposure

News Sentiment (30d)

0.63

Social Sentiment (7d)

0.00

Events

Other notable items detected

EVENT2026-08-06
Q2 beat and narrowed outlook
Yelp reported Q2 revenue of $376 million, $8 million above the high end of outlook, while adjusted EBITDA was $91 million. Full-year revenue guidance was narrowed to $1.460-$1.470 billion and adjusted EBITDA guidance to $315-$325 million [#SEC-8K-2026-08-06].
Prob 95.00% • Move 6.00% • Priced-in 90.00%

Short-term Catalysts

Next few weeks

Core advertising and margin pressure
2026-11-24
Revenue growth remains modest, adjusted EBITDA declined 9% year over year, and management cited persistent pressure on local businesses. Further weakness or margin pressure could offset AI-related progress [#SEC-8K-2026-08-06].
Prob 60% • Move -8% • Priced-in 50%

Long-term Catalysts

Months to a year

AI and other-revenue monetization
2026-12-31
Other revenue nearly doubled year over year to $33 million, with management citing early traction for Yelp Assistant, Yelp Host, Hatch, and data licensing. Sustained scaling could improve revenue mix and support a higher valuation multiple [#SEC-8K-2026-08-06].
Prob 55% • Move 12% • Priced-in 45%

Risks

AI products and data licensing may not monetize at the expected pace
Adjusted EBITDA decline and investment-related margin pressure
Limited verified post-earnings analyst revision data
Persistent local-business and core advertising weakness
Recent insider dispositions, including one open-market CFO sale [#SEC-FORM4-2026-08-24]

Peers

Symbol	Summary
TRIP	Closest available operating comparison in user-generated discovery and intent monetization, though TripAdvisor is more travel-focused than Yelp.
QNST	Lead-generation and digital advertising comparison, but its customer mix and operating model are less directly comparable.
CCO	Local advertising-spend exposure comparison with weak product overlap; useful mainly for ad-cycle sensitivity.

Sources

Internal and external references used in this analysis

Model source: RankAlpha Sentiment Codex
Analysis date: 2026-08-26

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Symbol

Summary

TRIP

Closest available operating comparison in user-generated discovery and intent monetization, though TripAdvisor is more travel-focused than Yelp.

QNST

Lead-generation and digital advertising comparison, but its customer mix and operating model are less directly comparable.

CCO

Local advertising-spend exposure comparison with weak product overlap; useful mainly for ad-cycle sensitivity.