Forecast Of The Day: Yelp’s Active Advertising Local Business Accounts

What?

Yelp’s (NYSE:YELP) Active Advertising Local Business Accounts declined from around 565,000 in 2019 to about 520,000 in 2020. Trefis expects the number to recover to around 594,000 in 2021 and to 666,000 in 2022.

Why?

Although the number dipped a bit in 2020, due to the Covid-19 pandemic, we expect the number to rise in the long run, driven by an increasing shift to online advertising.

So What?

We think the projected growth in Yelp’s advertising business is priced into the stock. We value Yelp at about $39 per share, in line with the current market price.

See Our Complete Analysis For Yelp