Facebook, Inc. (NASDAQ:FB): Current Price: $29.89
Yelp (NYSE:YELP) dropped for a second day following Facebook’s announcement that it will launch a new search product, which is to be named Knowledge Graph Search. Facebook’s initiative should allow users to see reviews of local businesses that have been written by their friends. Some believe that this will cause Knowledge Graph Search to be a competitor to Yelp’s offerings. Today, in a note to investors, Piper Jaffray analyst Gene Munster wrote that Facebook will find it difficult to attract a large amount of users to its reviews, since there are already 37 million reviews on Yelp’s website. Also, Yelp users may have the ability to already see reviews that have been written by their Facebook friends on Yelp, Munster adds.