What Happened?
Shares of local business platform Yelp (NYSE: YELP) jumped 8.8% in the afternoon session after Evercore ISI Group upgraded the stock to “Outperform” from “In Line” and raised its price target. The firm's analyst, Shweta Khajuria, increased the price target on Yelp's shares to $45.00 from a previous target of $37.00. This new target represented a potential 21.62% upside from its prior level. The upgrade and higher price target indicated a more positive outlook on the company's future performance.
Is now the time to buy Yelp? Access our full analysis report here.
What Is The Market Telling Us
Yelp’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock dropped 3.3% on the news that President Trump threatened to impose "massive" new tariffs on Chinese imports, reigniting trade war fears.
The unexpected announcement shattered a monthslong calm on Wall Street, sending major indices tumbling. The S&P 500 dropped around 1.3%, while the tech-rich Nasdaq Composite fell 1.7%. Investors reacted by selling off stocks, particularly in the technology and retail sectors, amid concerns that escalating trade tensions could disrupt global supply chains and increase costs for companies. The sell-off marked a significant reversal from the morning's slight gains, highlighting the market's sensitivity to geopolitical trade developments.
Yelp is down 15.6% since the beginning of the year, and at $32.96 per share, it is trading 20.1% below its 52-week high of $41.25 from January 2025. Investors who bought $1,000 worth of Yelp’s shares 5 years ago would now be looking at an investment worth $1,609.
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