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Hedgeye's Internet & Media Team hosted an update call to our SHORT Yelp (YELP) Best Idea. YELP's business model is unsustainable and is already breaking down. Further, a new major red flag has emerged, which we believe is what prompted YELP to shop itself. However, we don’t believe YELP will find a buyer.


We updated our bearish thesis and explained why we see an additional 35%+ downside from here.


  • Extreme Attrition Rate: Overwhelming majority of customers are churning off annually.
  • Insufficient TAM: YP.com is not the low-hanging fruit, it's a pipe dream.
  • New Major Red Flag: The story is going to turn much sooner, and get much uglier, than we initially expected
  • Is There a Buyer? Assessing the M&A landscape in terms of both ability and willingness of potential suitors