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Yelp’s Growth Strategy ‘Completely Fell Apart’

The Yelp Inc. application
Photographer: Andrew Harrer/Bloomberg

Yelp Inc. analysts turned highly negative on the user-review website in the wake of its third-quarter results, which fell short of expectations. The company also gave an outlook suggesting growth would continue to slow.

A number of firms issued downgrades, including Wedbush, which writes that "the mis-execution in and challenges to the strategy need further examination by management." The cuts, along with reduced targets, are contributing to the stock’s collapse of 31 percent in pre-market trading.