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Friday, October 13, 2006

Stupid Analyst Call Of The Week: Weisel On Yahoo!

Thomas Weisel, the investment bank, downgraded Yahoo! today. The stock got moved from "peer perform" from "outperform". A slowing internet advertising market was given as the primary reason for the move.

Hopefully, Weisel is not charging for its research. When the analyst lives in a cave in the woods and gets to see a newspaper once a year, the opinions aren't worth much.

It dawned on the general market that Yahoo!'s fortunes were flagging when the stock dropped from $43 to $34 this past January. And, if Weisel needed further evidence that the slowing internet ad market was hurting Yahoo!, the stock's fall from $32 to $25 in July after it was clear that Yahoo!'s second quarter has been a disappointment. Then there was the most recent drop from $29 to $24 when Yahoo! management mentioned the Q3 would come in at the low end of expectations.

Yahoo! is dead meat for the time being, but, we knew that already.

Douglas A. McIntyre can be reached at He does not own securities in companies that he writes about.

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