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AOL (AOL)  surged Tuesday following a Bloomberg report that Verizon (VZ) - Get Verizon Communications Inc. Reportwas in talks to buythe Internet company, and despite Verizon CEO Lowell McAdam dismissing the report, the stock remained high all day, gaining 3.4% to close at $46.25.

General Electric (GE) - Get General Electric Company (GE) Report took a tumble after a skeptical report from JPMorgan in a investor note led by analyst C. Stephen Tusa. 

Bloomberg cited anonymous sources which said Verizon executives approached their AOL counterparts about a possible tieup. Verizon is reportedly most interested in AOL's programmatic advertising technology. Later in the day,  McAdam discounted the rumor at an investor conference hosted by Citibank.

AOL declined to comment but the market promptly reacted enthusiastically. Even as shares fell from their session highs, AOL was an outlier, gaining on a day when most media stocks fell. 

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As for General Electric, Tusa's strongly-worded note sent the Fairfield, Conn-based technology and financial services company's shares falling. For the day, GE lost 2.2% to close at $24.07. 

"While Bulls see the crystallization of these events and the resultant simplicity as a platform for outperformance, we see a continuation of well below average earnings growth and negative relative earnings revisions as ongoing headwinds for the stock, at least through '16," Tusa wrote. 

Over the last 12 months, shares of GE have dropped 9.9%, while the S&P 500 has gained 11%. Tusa forecasts that GE will continue to underperform the market through 2015.