Fallout from the Cingular Wireless L.L.C. and AT&T Wireless Services Inc. merger continued last week as separate developments sent tumbling shares of one mobile content provider and another e-commerce company.
Shares of InfoSpace Inc. fell 8 percent on Nov. 17 after the content provider was downgraded by Raymond James from “strong buy” to “outperform.” Raymond James also reduced the target price from $63 to $61. An RJ analyst said the downgrade was due to uncertainty regarding Cingular’s long-term strategy for wireless data.
Similar rationale was behind the decision by Lightbridge Inc. to lower its fourth-quarter forecast. Citing a loss of revenue from AWS, the transaction-processing company said it now expects to post a loss per share of 2 cents to 8 cents in the quarter on revenues of $30 million to $32 million.
Lightbridge shares fell more than 10 percent on the news.
“We have been notified to expect a significant slowdown in business from AT&T Wireless, as a result of their recent merger with Cingular Wireless,” said Tim O’Brien, Lightbridge’s chief executive officer.
