Blodget downgrades Yahoo in the teens. I downgrade Blodget! LOL!
He is worth-less now than he was a few years ago.
Here is an interesting article on Blodget shamelessly pumping Amazon. washingtonpost.com
Guess when Blodgett last upgraded Yahoo? How about a little over one month ago!
Here we go again?
Tuesday January 30, 6:55 pm Eastern Time
Blodget reccommends buying AOL, Yahoo, eBay
NEW YORK, Jan 30 (Reuters) - A leading analyst on Tuesday recommended buying stocks such as AOL Time Warner Inc. (NYSE:AOL - news), Yahoo Inc. (NasdaqNM:YHOO - news) and Amazon.com Inc. (NasdaqNM:AMZN - news), saying the Internet industry has passed its low point, even if it still faces one or two rough quarters.
Merrill Lynch's Henry Blodget, who made his name as an early Internet bull when he set a $400 target for Amazon.com stock in 1998, also recommended building positions in online auctioneer eBay Inc. (NasdaqNM:EBAY - news), online advertiser DoubleClick Inc. (NasdaqNM:DCLK - news), mobile Internet company Openwave Systems Inc. (NasdaqNM:OPWV - news) and Homestore.com Inc. (NasdaqNM:HOMS - news)
In a research note to investors titled "Internet
Not a Hallucination", Blodget said he thinks the sector has already passed its bottom.
However, he cautioned that the ``effects of the dot-com bubble revenue 'incest,' peer pressure, a supply and demand imbalance and complacent salespeople'' will continue to disrupt growth for another one to two quarters.
Internet stocks have had a tough couple of quarters as demands for profitability from Wall Street have caused many companies to cut jobs and reevaluate business models. The climate has become even more challenging for some of the companies as ad spending has declined and the economy shows signs of slowing.
Advertising and e-commerce fundamentals will remain weak for at least two quarters but the weakness is already in the models and stock prices of the leading companies in the sector, Blodget said. After that, pricing power should increase and competition should decrease, he added.
The online ad industry has become complacent after only having to ``answer the phone'' as companies rushed to advertise in recent years, he said. Now it has to cut pricing and innovate to prove the return on investment for advertisers.
With more than 50 percent of the U.S. market and 80 percent of disposable income already online, Blodget said the Internet sector has to focus on opportunities abroad for new users.
Do analysts place upgrades and downgrades on stocks based on their employers investment banking interests and large positions?
And if so, what is the SEC doing about it?
Rande Is |
