Henry Blodget | |
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.jpg) Blodget in 2012 | |
| Born | Henry McKelvey Blodget |
| Occupation(s) | Businessman Investor Journalist |
| Known for | Formersecurities analyst atMerrill Lynch duringdot-com bubble charged with civil securities fraud |
Henry McKelvey Blodget is an American businessman, investor and journalist. He is notable for his former career as anequity research analyst who was senior Internet analyst forCIBC Oppenheimer and the head of the global Internet research team atMerrill Lynch during thedot-com era.[1] Following thedot-com bubble, Blodget was charged with civil securities fraud by the U.S. Securities and Exchange Commission, settled the charges and was banned from working in the financial industry for life.[2] Blodget is the co-founder and former CEO ofBusiness Insider.[3]
After college, Blodget taught English in Japan, then moved to San Francisco to establish a writing career. He became afreelancejournalist and a proofreader forHarper's Magazine.[1]
In 1994, Blodget joined the corporate finance training program atPrudential Securities, and, two years later, moved toOppenheimer & Co. in equity research. In October 1998, he predicted that the common stock ofAmazon (Nasdaq: AMZN) then trading at $240, would be priced at $400 within a year. This was thought highly unlikely at the time; however, just three weeks later Amazon's stock price passed that mark, a gain of 67%.[4] This call received significant media attention. Two months later, Blodget accepted a position atMerrill Lynch, and frequently appeared onCNBC and similar shows.[4][5] He accepted a buyout offer from Merrill Lynch and left the firm in 2001.[1] Subsequently, he was charged with civil securities fraud regarding actions taken while at Merrill Lynch.[6]
In 2002, then New York State Attorney GeneralEliot Spitzer published private Merrill Lynch e-mails in which Blodget negatively assessed stocks, in many cases conflicting widely with positive analysis he and Merrill Lynch had published.[7] In 2003, he was charged with civilsecurities fraud by theU.S. Securities and Exchange Commission, relating to Blodget issuing materially misleading research reports on internet companies, and making exaggerated or unwarranted claims about them to customers.[6] He settled the charges after making a payment of $4 million and was permanentlybarred from employment in the securities industry by theSEC,NASD, andNYSE.[8]
Following his ban from the financial industry, Blodget became a financial and economics writer. He has contributed toSlate, where his articles about investing carry a seven-paragraph disclosure of potential conflicts of interest.[9]
In 2007, Blodget co-foundedBusiness Insider (initially known asSilicon Alley Insider) and was its initial CEO and editor-in-chief.[10] In January 2007, Blodget publishedThe Wall Street Self-Defense Manual: A Consumer's Guide to Intelligent Investing.[11] In November 2023, he stepped down as CEO.[12]
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