S&P to Investors: Sell Your TiVo Stock!

[dkennedy]

S&P to Investors: Sell Your TiVo Stock!

Standard and Poor reduces its rating on the DVR service from Hold to Sell.

December 29, 2005

By Phillip Swann, tvpredictions.com

Will TiVo have a breakthrough or a breakdown in 2006?

The Digital Video Recording service is close to four million subscribers, but longtime marketing partner DIRECTV is now pushing its own DVR. Plus, EchoStar and most cable TV operators seem content to use their own non-TiVo DVRs as well. TiVo's sole deal with a cable operator (Comcast) won't go into effect until late 2006.

So, where will TiVo get its subscribers next year?

That's the question posed yesterday by Standard and Poor's Equity Research analyst Tuna Amobi who downgraded the company's stock from Hold to Sell. The action could trigger similar downgrades from other Wall Street analysts.

TiVo clearly needs another cable or satellite partnership -- and soon.

[dkennedy]

TiVo Outlook Hurt By Lack Of 2006 Catalyst

December 28, 2005

By Ed Lin, Forbes Magazine

Standard & Poor's Equity Research analyst Tuna Amobi downgraded TiVo to "sell" from "hold," and slashed the price target.

In a research note Wednesday, Amobi said, "Shares slipped materially in the second half of 2005 and we see no 2006 catalyst as a pact with DirecTV Group fades and branded-DVRs face competition from cable and DBS generics."

The analyst said that as EchoStar Communications patent litigation moves to a first-quarter 2006 trial, TiVo "could see new hurdles with potential network challenges over moves to differentiate with new portability features."

Despite a planned 2006 TV advertising-search feature and a mass rollout deal with Comcast, the advertising business "could take years to scale.'

Amobi cut TiVo's price target to $4.50 from $6.