Communications services shares ended higher with gains by sector bellwethers Meta Platforms and Alphabet.

Yelp, known for its restaurant ratings, is betting big on its home-services business as it leans into its more-reliable stream of revenue to offset weaker ad spending by restaurants.

The review site, which generates the vast majority of its revenue from advertising, is planning to spend $40 million this year to grow its business with local-services companies such as plumbers, electricians and movers, capitalizing on strong growth over the past two years. The spending blitz comes as Yelp's business with restaurants slumps, as the sector struggles to pass along rising costs for food and labor, and diverts advertising to places like food-delivery apps. 


Write to Patrick Sullivan at patrick.sullivan@wsj.com

(END) Dow Jones Newswires

06-27-24 1819ET