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Internet Bubbles Are Here Again

Zillow (Z) ($90.05) is up 73.2% since June 6, and as a result of a parabolic move to $94 on Monday, the stock has been downgraded to sell from buy. The company provides real estate information for all who participate in the housing market, including buyers and sellers. Zillow was a failed IPO, and reports quarterly results after the close Tuesday with the expectation that the company will report a loss of 39 cents a share. My monthly value level is $79.65.

Yelp (YELP) ($54.01) is up a staggering 96.7% since June 6. The company provides an online community covering restaurants, shopping, nightlife, financial services and health care. Yelp beat second-quarter EPS estimates by 2 cents by reporting a loss of 1 cent a share on July 31. The stock popped in a parabolic bubble move from $41.80 on July 31 to $59.35 on Aug. 2, which caused a downgrade to sell from hold. My weekly value level is $52.00.

Facebook (FB) ($39.19) is up 66.6% since June 6 and on July 24 reported EPS of 13 cents a share beating estimates by 4 cents. The stock returned to its IPO price at $38 and beyond to a test of $39.32 on Monday. As a result of this parabolic move, the stock has been downgraded to sell from buy. At $23.52 on June 6 it was a buy. At $39.19 on Monday it's a sell. The company is arguably the poster child for what a social networking company should be. My weekly value level is $34.44.

At the time of publication, Suttmeier had no positions in stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Richard Suttmeier has an engineering degree from Georgia Tech and a master of science from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. In 1981 he formed the Government Bond Department at LF Rothschild and helped establish that firm as a primary dealer in 1986. Richard began writing market research in 1984 and held positions as market strategist at firms such as Smith Barney, William R Hough, Joseph Stevens, and Rightside Advisors. He joined www.ValuEngine.com in 2008 producing newsletters covering the U.S. capital markets, and a universe of more than 7,000 stocks. Richard employs a "buy and trade" investment strategy and can be reached at RSuttmeier@Gmail.com.
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