Skittish Analysts Slash Yahoo! and Express Concerns for Other Internet Plays
Do you, uh, know about Yahoo! (YHOO Quote)?
The analysts certainly do. And now, just one year after some helped hype Yahoo!'s stock to the moon (Alice!), they're munching on a big ol' bowl of crow. Cue Glenn Close and Jeremy Irons -- this is a big reversal of fortune. Today, the stock is off 21% to $16.56. It's 52-week high is $205.63.
Merrill Lynch's influential Henry Blodget made the biggest news, dropping the company to neutral from strong buy, while dropping revenue and earnings estimates. Like many other analysts, he cited limited visibility and slowing user growth as major reasons for the move. In 1999, Blodget was so bullish on the sector that he put an unthinkable price target of $400 on Amazon.com (AMZN Quote), which later ascended to that level. Yahoo! was another favorite -- and now it's not, especially after yesterday.
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