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    Yelp (YELP) Could Be 22% Undervalued After New AI Tools And Licensing Deals

    Simply Wall St·10/20/2026 12:23:45
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    Yelp (YELP) just rolled out a cluster of AI features, from the Check for Me calling tool to deeper OpenTable integration, while also putting its data behind paid licensing deals for external AI agents.

    All these AI launches arrive after a tough stretch for Yelp’s equity, with the share price at US$19.57 and the year-to-date share price return down 35.2%. This echoes longer term total shareholder returns, which have also declined sharply over one, three and five years.

    Scan beyond Yelp and size up AI focused platforms using the hand picked 39 AI small caps that are trying to turn product launches into real business traction.

    Yelp now trades near multi year lows despite revenue of US$1.47b and net income of US$126.5m. Does the current valuation still compensate you for the hit the share price has already taken?

    Most Popular Narrative: 22% Undervalued

    The most followed narrative on Yelp values the stock at $25.13 per share using a 9.03% discount rate, compared with the last close of $19.57. This frames today’s price as a steep markdown on those long term cash flow assumptions.

    Scaling AI driven subscription tools like Yelp Host and Hatch, which together are on tens of millions of dollars of annualized revenue run rate and growing from a relatively small base, gives Yelp a path to add higher visibility subscription and transaction revenue alongside advertising.

    See why 16 investors see Yelp as 22% undervalued.

    Result: Fair Value of $25.13 (UNDERVALUED)

    Still, Yelp’s story can break if weakness in key ad categories persists, or if rising AI and marketing spend outpaces the extra revenue those tools bring in.

    Find out about the key risks to this Yelp narrative.

    Next Steps

    Seen enough caution and curiosity in the Yelp story to be intrigued but not yet convinced? Move quickly from headline takes to your own judgment and use the 3 key rewards.

    Looking for more investment ideas beyond Yelp?

    If Yelp has you rethinking your watchlist, do not stop there. Use curated stock lists to pressure test your thesis and widen your opportunity set.