Freescale Semiconductor Ltd (FSL), Facebook Inc (FB), Yahoo! Inc. (YHOO): Three Most Bullish Upgrades From Tuesday

Goldman insists that pricing pressure is not hurting Yahoo! Inc. (NASDAQ:YHOO)’s ad revenue, and further suggests that inventory growth and improvements in revenue per search have bolstered the company’s ad sales, according to channel checks.

Goldman believes that weak expectations for search and display ad sales could lead to a strong post-earnings performance as the firm raises its revenue expectations for the company’s largest segment. However, for a company with zero growth, I simply cannot validate its price/sales ratio of 5.63. Goldman notes that low expectations could be favorable for the company, and investors, but after a 70% one-year gain I tend to believe that expectations are higher than what the firm realizes.

Final Thoughts

Clearly, my choice from these top three market-moving upgrades is Facebook Inc (NASDAQ:FB).

While I like the reasons for both Yahoo! Inc. (NASDAQ:YHOO) and Freescale Semiconductor Ltd (NYSE:FSL), I cannot discount Yahoo!’s lack of growth and its large run higher, nor can I discount Freescale Semiconductor Ltd (NYSE:FSL)’s massive debt load.

Facebook Inc (NASDAQ:FB) has went from being one of the most talked about tech companies, to a near under-the-radar play, as retail investors pay close attention to the likes of Yahoo! Inc. (NASDAQ:YHOO), Google, Amazon, and Apple.

At 10.88 times sales, I think Facebook Inc (NASDAQ:FB) is priced attractively in a space that is historically expensive. I also believe that because of its large user base that there is a lot of room for the company to grow larger, and that increased momentum would answer a lot of questions into this earnings season. Thus, I’d watch the stock closely over the next couple months.

The article 3 Most Bullish Upgrades From Tuesday originally appeared on Fool.com and is written by Brian Nichols.

Brian Nichols is long FB. The Motley Fool recommends Facebook. The Motley Fool owns shares of Facebook. Brian is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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