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Boy, the way that


played, MP3s that made the hit parade, guys like



had it made -- those were the days. Please note the past tense.

Back in the day, about 11 months ago, when the Web was still red-hot and things such as B2B were


primo stocks to own, CMGI was an industry leader in another red-hot area of the Web world -- Internet incubation. But things have changed. CMGI is no longer a market darling, having seen its stock price plummet to the teens from a 52-week-high of $163.50.

Lately, the company has been telling anyone who will listen that it is trying to become profitable by the end of fiscal 2001, and has made steps in recent days to do so, selling its iCast Web entertainment portal and ditching unit It also dropped and in recent weeks. But analysts have soured on the company and its competitors, too. Simply put, Web incubation is now seen as a risky investment, not a potentially lucrative one.


Merrill Lynch


Henry Blodget dropped CMGI to long-term accumulate from long-term buy, while reiterating his current short-term accumulate rating. In the report released this morning, Merrill credited the company for its attempts to take losses off the balance sheet, but said there still was a long way to go.

"While our prior concerns about the cash position have been alleviated, the company faces major restructuring, integration, divestment, and other executional challenges which will likely continue through the balance of 2001," Blodget wrote. CMGI was also downgraded to hold from buy at

Credit Suisse First Boston

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