Initial estimates of a $550 million year for Facebook in 2009 may be lower than expected. In fact, the company may have brought in as much as $700 million, though it is notoriously tight-lipped about the size of its coffers. In what was clearly a banner year for the social media site, it also moved into positive free cash flow territory – and the number of users continues to rise across the board.

Facebook's revenue trajectory – at least to the extent that it can be gauged – has been impressive. From $150 million in 2007, it grew to an estimated $280 million to $300 million in 2008 and a 2009 result that could range from $600 million to $700 million. Revenue has at least doubled every year, a trend that Inside Facebook expects to continue. Of course, these are all third-party estimates, and Facebook isn't saying a thing.

Revenue hasn't been as fast to change as end-user sentiment, but all that looks like it's coming to an end next year. Social networking site Facebook, which passed 350 million users last month, is poised to move ahead of rival MySpace in ad revenue in 2010, according to a report from eMarketer. The research firm expects Facebook to rake in $605 million in ad spend next year, compared to $385 million for MySpace, which is a News Corp. (NWS) property.

According to Debra Aho Williamson, senior analyst at eMarketer and author of Social Network Ad Spending: 2010 Outlook, "As more marketers incorporate social networks in their business, they will no longer look at them as siloed destinations. Instead, they will look to increase the impact of their social network presence by linking it to other marketing initiatives, both online and offline."

The number two search engine in the United States turned in a fantastic third quarter, far ahead of expectations. Cost-cutting, layoffs and business divestitures led to a surge in Yahoo's (NASDAQ: YHOO) profits and a 4.8% increase in share price in extended trading on Tuesday evening. Net income more than tripled to $186.1 million (13 cents per share) from the third quarter of 2008's result of $54.3 million (4 cents a share). Sales (exclusive of fees passed to partner sites) reached $1.13 billion, slightly above the $1.12 billion expected by analysts, according to a Bloomberg survey.

With the advertising market in rough shape and competition from Google (NASDAQ: GOOG) continually rising, Yahoo refocused on its core properties: the home page, messaging and mobile services. The company trimmed what it didn't need, which is why it was able to boost its earnings even with a decline in revenue. Increased ad revenue from auto manufacturers, travel companies and consumer product manufacturers also helped.

Yahoo's chief financial officer, Timothy Morse, says that the company's markets are "starting to stabilize." Of course, Yahoo itself must be doing something right: its share price is up 41% this year.

Today's economic numbers looked just as we expect for some time: Horrible. University of Michigan sentiment and housing looked atrocious. Warren Buffett wrote a short piece in the New York Times calling it the time to buy stocks. Today was an options expiration date and that led to added volatility throughout the trading day. Below are today's unofficial closing bell levels:

DJIA 8,852.22 (-127.04; -1.41%)
NASDAQ 1,711.29 (-6.42; -0.37%)
S&P500 940.50 (-5.93; -0.63%)
10YR T-Bond 3.938% (+0.002%)
Top Analyst Upgrades

Gilead Sciences (NASDAQ: GILD) traded up marginally after beating earnings with $0.55 non-GAAP EPS vs. $0.49 estimates, but it did outline how currencies helped out its bottom line. Shares still managed to trade up today and shares were up 3% at $42.67 right before the close.