Social media and Internet stocks have been some of this year's hottest investments. Twitter, LinkedIn and Facebook have all outperformed the broader market this year, up a respective 40, 11 and 7 percent. But there's one company missing out on the rally: Yelp.
The stock is down 15 percent this year, and according to Cowen & Co.'s head of sales trading, David Seaburg, it could be in for some serious trouble down the road. Yelp "is not a stock you should buy [at current levels]. It's not a stock you should own. It's a trade, not something you invest in, I think it's dead money," he told CNBC's "Trading Nation" on Friday.
Despite Seaburg's negative view on the stock, Cowen has an outperform rating and $65 price target on Yelp, which was trading at $47.18 Friday afternoon.
Seaburg pointed out that Yelp shares have fallen 40 percent from the 52-week high set in September. Despite the selloff, the stock is still not cheap in his view.
"When you look at price to sales, Yelp versus its comps, it looks relatively cheap. It looks like it's trading at a discount or in line to most of its peers," said Seaburg. "But when you look at the breakdown in the stock in a price perspective, and the performance to its comps, you see the outlook for growth isn't there."