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Bad review for Yelp. Investors bail

February 7, 2013: 1:19 PM ET

Yelp (YELP) is getting bad reviews from investors Thursday after reporting a wider quarterly loss.

The company, , which provides user-generated reviews of local businesses, has been making a big push to expand into other countries but that costs money. Sales and marketing expenses jumped 59% in the latest quarter.

That's a tough pill for investors to swallow when they're looking for a profit.

Shares are down 5% today and have slid some 13% over the past year.

Click chart for more on Yelp's stock

But analysts have some kind words for the review site.

JPMorgan analysts called Yelp's results "solid" and noted the company's progress on the mobile front, which represented 25% of local ad impressions in the latest quarter.

"We're incrementally more positive," said the analysts, who kept a neutral rating on the stock. They also noted the inroads Yelp is making on the international markets. "We believe monetization of overseas markets remains a priority," they said. And that leaves a lot of room for growth (and profitability)

StockTwits traders were mixed with their reviews.

Out of my $YELP at some point today. mobile is tough...maybe one day but needs to be easier

Yes, there's no denying hat mobile growth is far from easy. But consider this. Yelp said its mobile app was used on roughly 9.2 million unique mobile devices (on a monthly average). That certainly sounds like they're making progress.

And keep in mind that they are working toward growing overseas, which should help push revenue growth.

The $YELP numbers are solid, profit shouldn't be the issue right now, revenue growth was strong and inline with Estimize consensus

@AnalystWire YELP and FB. Lack relations. FB doesn't search for restaurants. Yelp cant buddy others. $YELP $FB $AAPL vs $GOOG. yay FB Bullish

AnalystWireYelp ($YELP) Challenged by Google ($GOOG) & Facebook ($FB) but Brand Not Easily Replicated

Right on BrightAzn and AnalystWire. While Yelp took a hit when Facebook (FB) first announced its "graph search" function, as time has dragged on, most people have come to realize it may not be the threat some thought it was at first blush.

$YELP is toast. $AAPL and $GOOG can and will eat their lunch. Maybe an acquisition at $5/share.

Way to be a naysayer. Maybe Yelp will be a target. But at the moment, I think Apple (AAPL) has bigger fish to fry. Its stock is down more than 35% from its all-time high on growing worries about Apple's ability to keep the i-momentum going.

$YELP is simply purchasing growth. Not hard to make a dollar when you spend two dollars to bring it in.

Well you know what they say. You've got to spend money to make money.

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Catherine Tymkiw
Catherine Tymkiw
News Editor CNNMoney

Catherine Tymkiw is a news editor at CNNMoney where she helps oversee breaking news coverage and futures planning. Previously, she was the investing editor. Prior to joining CNNMoney, she was the online editor at Crain's New York Business and has nearly two decades of reporting and editing experience. She tweets @ctymkiwcnn

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