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Yahoo Rises as Merrill Turns Bullish

Yahoo shares are on the rise this morning after Bank of America/Merrill Lynch analyst Justin Post lifted his rating on the stock to Buy from Neutral, increasing his price target to $19, from $17. Post describes Yahoo as “a growth company which is now trading like a long-term secular decliner.”

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Videogames: Stocks Fall Despite Surprisingly Strong October Sales; Merrill Downgrades Activision, EA

Comments from Merrill Lynch analyst Justin Post this morning are affecting the outlook for videogame stocks. Post cites data that indicate a drop in consumer spending in November–and he states that even though Merrill’s overall thesis is that the videogame category will remain strong, pricing pressure and the reality of the unfolding economic downturn dictate a more cautious view.

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eBay: Merrill Says Trends "Remain Troubling"

There’s troubling brewing at eBay (EBAY). In a research note late yesterday, Merrill Lynch Internet analyst Justin Post said checks with the Professional eBay Sellers Association indicate that eBay’s gross merchandise value growth in the U.S. “turned negative” in September.