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Fast Money

Analyze This: Flying Blind


It could be the end of an era when it comes to corporate earnings. Fewer and fewer companies are offering revenue guidance.

In fact, Intel , Verizon , Kodak, Starbucks , Microsoft and Sun are just a handful of the growing number of companies no longer offering formal guidance, explains Dylan Ratigan. "30% is the increase in the number of companies that now say there will be no guidance," Ratigan says.

Although some investors aren’t pleased the Fast Money traders think it’s a step in the right direction. Karen Finerman says “I love it… because it allows CEO’s to not have to focus on the short-term which forces them to use resources in not the best way.”

“Guidance made investors lazy,” adds Guy Adami. “They didn’t do their homework. Now they have to.”

Considering fewer companies will be providing guidance we couldn't help but wonder how analysts will come up with estimates.

Companies Dropping 2009 Guidance

For insights we turned to Citigroup Internet analyst Mark Mahaney. “I’ve switched to a top down model,” he says. He makes it sound simple.

For the space he covers Mahaney is looking at 3 things:
What’s going to happen in overall advertising?
What percentage would come online?
What happens in terms of market share gains or losses?

“I don’t want to simplify too much but it’s really those three simple drivers I look at, he concludes.

Mahaney always has great insights. For more watch the video above.

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Trader disclosure: On Feb. 2nd, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour Owns (AAPL), (BAC), (EEM), (FXI); Macke Owns (DIS), (MS), (SDS), (MCD); Finerman's Firm Owns (DNA) & (DNA) Call Spread; Finerman's Firm Owns (MSFT), (XBI), (IBB); Finerman's Firm Is Short (IYR), (IJR), (IWM), (MDY), (SPY), (USO); Najarian Owns (AMGN) Call Spread; Najarian Owns (BMY) Calls; Najarian Owns (DRYS) Stock & (DRYS) Puts; Najarian Owns (EEM) Call Spread; Najarian Owns (FCX) & (FCX) Short Calls; Najarian Owns (GDX) Call Spread; Najarian Owns (MSFT) & (MSFT) Short Calls; Najarian Owns (MS) & (MS) Short Calls/Put Spread; Najarian Owns (V) Call Spread

Citigroup Owns 1% Or More Of (YHOO)
Citigroup Has Received Compensation From (AMZN), (GOOG), (YHOO)
Citigroup Provided Non-Investment Services to (AMZN), (GOOG), (YHOO)
Citigroup Is A Market Market In (AMZN), (GOOG), (YHOO) with wires