10 Cheap Internet Stocks to Buy According to Hedge Funds

8. Yelp Inc. (NYSE:YELP)

Forward P/E: 8.54

Number of Hedge Fund Holders: 27

Yelp Inc. (NYSE:YELP) connects consumers with local businesses through the internet. It offers a range of paid and free advertising products to businesses of all sizes, including CPC Advertising (Yelp Ads) and Multi-location Ad Products. This allows businesses to reach a larger audience and boost conversion of their services by advertising their products. Apart from advertising products, the company also offers consumer-interactive features that facilitate transactions between local businesses and consumers.

Yelp Inc. (NYSE:YELP) reported record net revenue and strong profitability in 2024, attributed to the strong execution of its product-led strategy. It accelerated the pace of its innovation, delivering more than 80 new features and updates. Fiscal Q4 2024 marked the 15th consecutive quarter of double-digit year-over-year revenue growth in its categories. Net revenue grew by 6% year-over-year to $1.41 billion, and net income rose 34% year-over-year to $133 million. Yelp Inc. (NYSE:YELP) also reported 8% year-over-year growth in adjusted EBITDA to $358 million.

Services remain to be the focus of the company’s road map and the driver of its business performance. Its new AI chatbot, Yelp Assistant, is also resonating with consumers, with project submissions through this feature up by more than 50% between fiscal Q3 and Q4 2024. The company ranks eighth on our list of the 10 cheap internet stocks to buy according to hedge funds.