Raymond James Downgrades InfoSpace
Raymond James downgrades InfoSpace (INSP ) to outperform from strong buy.
Analyst Mike Latimore downgrades based on what he sees as increased scrutiny regarding the mobile content strategy at Cingular (InfoSpace's largest wireless customer).
Based on industry contacts, he believes Cingular is doing a detailed review of its content strategy, and is seriously considering doing more direct relationships with record labels, as well as using additional content aggregators.
While the company stands to benefit from increased subscribers from AT&T Wireless, he believes there is enough uncertainty about Cingular's long-term strategy regarding content.