Bank Of America Corp (BAC) Upgrade Yahoo! Inc. (YHOO) and Downgrade Google Inc (GOOGL): What Do Analysts Say?

Bank of America Corp (NYSE:BAC) has recently upgraded Yahoo! Inc. (NASDAQ:YHOO) from ‘Neutral’ to ‘Buy’ rating and downgraded Google Inc (NASDAQ:GOOGL) from ‘Buy’ to ‘Neutral rating. In the last three months Yahoo! Inc. (NASDAQ:YHOO) stock has gained more than 10%, whereas Google Inc (NADSAQ:GOOGL) stock has dropped by more than 10%. ‘Fast Money’ traders talked on CNBC about their opinion on the two stocks.

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Fast Money trader Pete Najarian sided with Bank of America and said that he would rather Yahoo! Inc. (NASDAQ:YHOO) under current circumstances.

“I think right now under the circumstances we are under, I would rather Yahoo and for the reasons documented in this report (Bank of America report), they talked about Alibaba, they talked about the tax issues that could be a very positive move for Yahoo. There is a lot of things, and also lets add the whole mix to this, David Tepper took a pretty substantial nice move into Alibaba as well. […] I think the near term catalysts favor Yahoo,” Najarian said.

Fast Money trader Tim Seymour though had other opinions. He said that he would rather Google Inc (NASDAQ:GOOGL) even though Google Inc (NADSAQ:GOOGL) does not have any tax strategy as a catalyst as Yahoo does. He said that Google stock is trading at almost the bottom for a year, but not still broken and just needs a catalyst. He said that he would buy Google stock right away.

Fast Money trader Steve Grasso said that he would rather both Google Inc (NASDAQ:GOOGL) and Yahoo! Inc. (NASDAQYHOO) stock, but he added that he would rather Yahoo stock just a bit more than Google. He added that Google has a lot of trading options and it just has a risk of $10 on the headwind, but it still does have a lot of opportunity.

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