Shares droop on Jefferies downgrade

United Online shares sinked almost 15% to $11.05 on June 1st afternoon. This happened after Jeffereies & Co. lowered its rating on the company to hold from buy in the wake of SBC Communication's decision to drop its monthly fee for digital subscriber line access to $14.95. As to how we should respond to this, Jefferies expects that we should embed the Web accelerator feature which currently costs $4.95 a month more than the basic package which costs $9.95. Or we should probably think of lowering the basic price as well.

Due to the same SBC effect Earthlink's shares also dropped by around 7.7%

Still waiting for the decision on the reaction...