Friday, April 25, 2008

Analyst take on Q1 08 - Deutsche bank & Canaccord Adams

# George Chu, Deutsche Bank: Cut rating on the stock
to Sell, from Neutral, citing margin concerns; notes
while revenue in the quarter beat his forecast by 7%,
EPS only beat by 3%. He says rising costs of acquiring
traffic could pressure margins.

# Colin Gillis, Canaccord Adams: Gillis repeated his
Sell rating and $265 target on the stock. He says the
valuation is expensive; that Street expectations for
the second half may be too high; that the company
could be vulnerable to litigation about MP3 downloads;
that there is uncertainty it can monetize its foray
into Japan; and that a boost in spending from the
Olympics “may wane faster than expected.”

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