Yelp (YELP) ads may be too expensive for many small businesses and independent restaurants and that could lead to a slowdown in growth for the online review company. Pacific Crest Securities talked to small businesses and found many are not convinced the money they are spending on Yelp is having a material impact on revenue. On average, Pacific Crest found that small businesses spend an average of $7,200 a year on local advertising, compared with $4,600 that Yelp reports on average per local account. Yelp said in its recent earnings report that local ads account for 83% of total revenue, with $98 billion in local revenue. The Pacific Crest Analyst says if Yelp ads don't drive a meaningful uplift in sales, the cost of those ads for small businesses may be too hard to justify. Yelp shares have fallen 44% in the past 12 months.
More from Video
How quickly do we find support, is what we'll want to know now, as the correction is occurring while economic optimism builds.
Despite the president's promise of no stimulus until after Nov. 3, there are no signs yet that this is the sort of correlated selling that leads to a deep correction.
Salesforce, Amgen and Honeywell will give a lift to the DJIA going forward.
CAG has hung onto the bulk of its recent gains, and could rise to the $50 area, according to the charts and indicators.