24/7 Wall Street notes that Countrywide is laying off another 900 people (of 60,000). A small number in the grand scheme, but not confirmation of returning strength. As described, we believe the mortgage mess could be the trigger event in a cyclical downturn for online advertising. If so, the chart below–Countrywide (CFC) for the last three months–could resemble those of Google (GOOG), Bankrate (RATE), Yahoo (YHOO) et al for the next three. Goldman Sachs has a similar thesis–and downgraded the media sector yesterday.
GOOG/YHOO/RATE Chart Next 3 Months?