Investment website The Street.com is suggesting 2007 will continue to be tough on newspaper stocks not because of declining readership, but because ad revenue is tied into a market which is experiencing a cyclical downturn at the moment. Newspapers rely heavily on advertising from domestic auto companies, home builders, and the jobs and services surrounding them.

I think their advice is to short every publicly traded media company stock whose majority revenue come from newspapers. I disagree with their assumption that what is going on is “cyclical” and would state that we are seeing is a paradigm shift in information streams.

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