This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Three Social Media Stocks Upgraded

Stocks in this article: AOL FB LNKD HPQ PG QCOM

NEW YORK ( TheStreet) -- When the U.S. equities markets opened after Memorial Day stocks gapped higher due to commitments by central banks around the world to continue their quantitative easing programs.

The rally stalled shortly after 10 a.m. following a positive reaction to the Conference Board's reading on consumer confidence came in at 76.2, the highest level since the 2008/2009 recession ended. Even with a five-year high for confidence this reading remains below neutral range of 90 to 110 last seen in 2007 before the recession began. A 76.2 reading actually should be interpreted as consumers being less depressed. The major equity averages then stalled shy of their all-time and multi-year highs and drifted lower for the remainder of Tuesday's session.

On Wednesday the theme song changed to "What a Difference a Day Makes" as Treasury yields spiked higher with the 30-year bond yield rising to a 52-week high at 3.37%. With rising yields bond traders chimed in with the thought that the bond market was beginning to factor in an early end to the quantitative easing measures in the U.S.

With stocks higher on Tuesday and with a higher 30-year bond yield the ValuEngine Valuation Warning intensified to a new high for the year. ValuEngine shows that 73.8% of all stocks are overvalued with 36.9% overvalued by 20% or more. Only 10.8% of all stocks are undervalued by 20% or more.

In this environment ValuEngine upgraded three Internet services stocks also known as social media stocks. ValuEngine also downgraded two Dow components and another important stock in the computer and technology sector. The computer and technology sector is 17% overvalued with the Internet services industry 20% overvalued.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,908.68 +103.88 0.58%
S&P 500 2,071.19 +0.54 0.03%
NASDAQ 4,770.8240 +5.4440 0.11%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs