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Stock impact report

Investors five-year returns in Yelp (NYSE:YELP) have not grown faster than the company's underlying earnings growth [Yahoo! Finance]

Yelp Inc. (YELP) 
Last yelp inc. earnings: 2/13 04:05 pm Check Earnings Report
US:NYSE Investor Relations: yelp-ir.com/investor-overview
Company Research Source: Yahoo! Finance
But Yelp Inc. NYSE:YELP ) has fallen short of that second goal, with a share price rise of 14% over five years, which is below the market return. Zooming in, the stock is actually down 0.7% in the last year. In light of the stock dropping 4.3% in the past week, we want to investigate the longer term story, and see if fundamentals have been the driver of the company's positive five-year return. Check out our latest analysis for Yelp While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). Over half a decade, Yelp managed to grow its earnings per share at 30% a year. This EPS growth is higher than the 3% average annual increase in the share price. Therefore, it seems the market has become relatively pessim Show less Read more
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