Out Fox The $treet

This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More »   Update - Dec. 20 Pretty absurd downgrade of Yelp. The stock is basically being given away below $30 and JPMorgan doesn't want it. The stock has actually hit a new 52-week low on the news.  -Yelp downgraded to Underweight from Neutral at JPMorgan -JPMorgan analyst Cory Carpenter downgraded Yelp to Underweight from Neutral with a price target of $23, down from $34. The insurance lead generation sector is the analyst's favorite across small and mid-cap internet stocks for 2023. He downgraded Ziff Davis to Neutral and Yelp to Underweight citing a cautious view of online advertising. Trends in online advertising are unlikely to improve at least through the first half of 2023, Carpenter tells investors in a research note. Original article published on Nov. 4 Yelp reported a strong Q3'22 with revenues growing 15% YoY. The consumer review site cut Q4 targets d...

Alphabet was downgraded by Wedbush suggesting the companies search business faces an inflection point. The stock trades at a relative value with plenty of opportunities for financial discipline to boost profits. The suggestion is to let the stock tell you when the inflection point occurs, especially at these breakout levels above $800. Alphabet (NASDAQ: GOOG )(NASDAQ: GOOGL ) is trading sideways near a new high today after an analyst downgrade. The decision is odd considering the stock is near a breakout and potential run towards $900 and possibly even $1,000. Read the full article on Seeking Alpha.  Disclosure: No position. Please review the disclaimer page for more details. 

While the market appears overbought and everybody claims to be bullish, several indicators of action show a different story. The sentiment versus action debate in investors is beginning to match that of the consumer confidence reports.  Bespoke had an interesting graph yesterday showing that analysts have not had a single day of net upgrades this year. During the rally upwards in 2012, every day analysts come out downgrading stocks only to see them go higher.  This action related number gives a completely different view than the investor sentiment polls. Considering analyst actions typically are great contrarian indicators does this mean the market goes higher? Considering the 8th appears to have been the most negative day of the year so far with 25 more downgrades. Wow!