Yelp’s stock price dropped by as much as eight percent following the announcement of Facebook’s “Graph Search,” which could help users connect more easily with businesses your friends like.
Facebook’s Graph Search is aimed at helping you find things easier and make new connections. For example, it could help you find new restaurants, with queries such as “New York City restaurants my friends like” or “Restaurants my friends have visited.” If Graph Search works well, it could give people less incentive to use Yelp to find new places to eat. Likes are much lower-fidelity than reviews, but the new search option should still concern Yelp and other businesses.
Yelp opened the day trading at $21.97, but the company’s stock at one point sat at $20.10, a drop of 8.5 percent. Yelp gained a little a bit back at the end of trading today, but it still closed at $20.67, a drop of 5.9 percent.
Check out Yelp’s intra-day performance in the chart below.
Top photo via sylvar/Flickr