Yelp Now Offers August 2026 Options
Put Contract Overview: The $30.00 put contract for YELP has a bid of 80 cents, allowing investors to buy shares at a cost basis of $29.20, which is a 4% discount from the current price of $31.26. There is a 64% chance the contract may expire worthless, offering a potential 2.67% return on cash commitment.
Call Contract Overview: The $33.00 call contract has a bid of $1.30, and if shares are purchased at $31.26 and the call is sold, it could yield a total return of 9.72% if exercised. There is a 48% chance this contract may also expire worthless, providing a potential 4.16% additional return.
Volatility Insights: The implied volatility for the put contract is 37% and for the call contract is 36%, while the actual trailing twelve-month volatility is calculated at 35%.
YieldBoost Concept: Both the put and call contracts offer a "YieldBoost," with the put providing a 3.96% annualized return if it expires worthless, and the call offering a 6.17% annualized return under similar conditions.
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- Timing Misjudgment: A study indicates that soliciting feedback over the weekend can lead to distorted information, as employees' mental states during their time off differ significantly from weekdays, affecting the authenticity and effectiveness of the feedback.
- Psychological Impact: Employees' relaxed mindset on weekends may lead to a more negative perspective on work-related issues, resulting in feedback skewed towards negativity, which can compromise the quality of management decisions.
- Optimal Feedback Timing: The research suggests collecting feedback during specific periods on weekdays to ensure employees provide insights while in a more focused and positive state, thereby enhancing the quality and usability of the feedback.
- Management Strategy Adjustment: Companies should reassess their feedback collection strategies to avoid weekends, aiming to improve employee engagement and the effectiveness of feedback, ultimately optimizing decision-making processes and team collaboration.
- Revenue Performance: Yelp reported Q1 revenue of $361.5 million, exceeding analyst expectations of $353.7 million, reflecting a 2.2% beat despite flat year-over-year results, showcasing the company's resilience in a challenging market environment.
- Advertising Business Pressure: Management highlighted significant declines in paying advertising locations and ad clicks due to ongoing macroeconomic pressures affecting local businesses, with the CEO emphasizing the persistent economic challenges faced by local enterprises.
- EBITDA and Profitability: Adjusted EBITDA reached $79.35 million, surpassing analyst estimates of $61.85 million, with a 22% margin indicating improvements in cost control and operational efficiency, although overall guidance remains below market expectations.
- Future Outlook: Yelp reaffirmed its full-year revenue guidance of $1.47 billion, and despite uncertainties, management remains optimistic about the growth potential of AI products, particularly noting that 15% of Request-A-Quote projects now originate from the Yelp Assistant, which could enhance future advertising conversion rates.
- Earnings Beat: Yelp reported Q1 revenue of $361 million, a 1% year-over-year increase, while adjusted EBITDA fell 7% to $79 million, indicating ongoing pressure in its advertising business despite the earnings beat.
- Weak Advertising Demand: The decline of 6% in paying advertising locations and a 10% drop in ad clicks highlight the challenges in the local advertising market, raising investor concerns about future performance.
- Maintained Long-Term Outlook: Yelp reaffirmed its 2026 revenue outlook at a midpoint of approximately $1.47 billion and adjusted EBITDA at about $320 million, demonstrating confidence in its future despite the current challenging environment.
- Other Revenue Growth: While core advertising trends slow, Yelp's “other revenue” segment, including Yelp Host, Hatch, and data licensing, surged 75% year-over-year to $29 million, with a target of achieving a $250 million annual run-rate by the end of 2028.
- Revenue Growth: Yelp's Q1 net revenue increased by 1% year-over-year to $361 million, despite a 27% decline in net income to $18 million, indicating slight growth potential under advertising market pressures.
- AI-Driven Revenue Surge: Other revenue soared by 75% year-over-year to a record $29 million, reflecting the company's strategic focus on AI-driven revenue streams, particularly through Yelp Host and data licensing initiatives.
- Market Opportunity: Yelp Host surpassed an annual run rate of 1.5 million calls handled in April, more than doubling since January, with the CEO estimating a market opportunity exceeding $1 billion in the U.S., highlighting strong growth potential for this service.
- Future Outlook: The company anticipates Q2 net revenue in the range of $363 million to $368 million, maintaining full-year net revenue targets between $1.455 billion and $1.475 billion, while management expresses cautious optimism about future revenue growth despite uncertainties in advertising budgets.
- Stock Price Surge: Yelp's stock rose over 3% on Tuesday following the announcement of its spring product update, demonstrating investor enthusiasm despite a 0.6% dip in the S&P 500 index.
- Launch of AI Assistant: The newly introduced Yelp Assistant, an AI-powered chatbot, assists users in finding goods and services, making restaurant reservations, and obtaining quotes, marking a significant evolution in Yelp's product offerings.
- Strategic Shift Potential: According to Chief Product Officer Craig Saldanha, Yelp Assistant represents the company's most significant AI product evolution, aiming to reconceive Yelp around instant answers and seamless actions, which could facilitate a shift away from its advertising-dependent business model.
- Cautious Future Outlook: While the new offering has the potential to attract users and drive business transformation, analysts suggest that Yelp's effectiveness in executing this strategic shift remains to be seen, with future success hinging on user acceptance and market feedback.
- Service Launch: Yelp has introduced Yelp Assistant, an AI chatbot that helps users find suitable businesses and directly book products and services, marking a significant update to its product lineup.
- Stock Performance: On a day when the overall market dipped by 0.6%, Yelp's stock rose over 3% on Tuesday, indicating positive investor sentiment towards the new product.
- Strategic Shift: According to Chief Product Officer Craig Saldanha, Yelp Assistant represents a major evolution in the company's AI offerings, aiming to reconceive Yelp around instant answers and seamless actions.
- Future Outlook: While Yelp's business model remains heavily reliant on advertising, the introduction of this new service could drive the company towards a more attractive business model, making its future performance worth watching.











