Henry Blodget has never gotten used to the chorus of hate that follows his every move. He's merely learned to live with it. When he started his personal blog in 2005, the comments dripped with disgust. "You are a boldface liar," a reader wrote. "Give me one reason why I should believe what you are writing," said another. And that was just in response to Blodget's innocuous first entry.

During his years as a star Wall Street analyst, his pronouncements were welcomed and celebrated; now he couldn't say hello without getting savaged. Just last August, TechCrunch mentioned that Blodget would be one of more than two dozen tech celebrities judging a contest for startups. Blodget knew what was coming, even if his hosts didn't. "Blodget is scum.... He is no longer the arrogant prick we saw in the '90s, but he's still scum," someone wrote. "A lot of people lost money listening to this dirtbag." "Blodget is a Web 1.0, bubble-creating has-been." "He is unethical." "He's as crooked as they come."

I meet Blodget at the offices of his new business, a year-old site called Silicon Alley Insider, shortly after the TechCrunch beat-down. Alley Insider is one of many tech business blogs that feed news, earnings info, and rumors to investors and corporate insiders. But Alley Insider has one thing that others don't. Blodget. He's smart, he's skeptical, and he's got the kind of self-assured voice that sells well in the blogosphere. As the market sinks, his opinions are even more in demand, though he's still hated by a large portion of his prospective audience.

The site shares two floors of a Manhattan office building with programmers and business staff for some of Alley Insider's sister companies, all of which were started by former DoubleClick CEO Kevin Ryan. Blodget works in a double-wide cubicle near a window, separated by a low wall from the site's two other editors. They spend their days crawling Twitter and RSS feeds, calling sources, and pumping out about a dozen daily takes on the business world, most with Digg-friendly headlines (no easy accomplishment with bone-dry business stories). "Is Facebook Distracting Us From Porn? No" is typical, or "Google's Ginormous Food Budget: $7,530 Per Googler, $72 Million a Year." Blodget tells his team to think of the site as talk radio: He wants readers to feel compelled to check in several times a day to get the Alley Insider view on everything going on in their world.

For privacy, we duck into a small conference room, and Blodget, tall and skinny, sinks into a ridiculously deep leather chair. His floppy dirty-blond hair gives him a youthful, almost carefree air, but the deep circles that ring his eyes tell a different story. He's managing a 24-hour news startup. It's midday and he's been posting since 5 am. And then there's the burden that comes with being Henry Blodget, digital punching bag.

"There are obviously a lot of folks who say, 'Now wait a minute, isn't that the guy who....'" He lets the thought trail off. He's legally barred from talking about the incidents that led to his vilification. "To them, I'm that Henry Blodget. There's not much more I can say. I still can't address specific points. So it's like, 'OK, here's my face. Throw the fruit. When you want to stop throwing the fruit, if you want to listen, great. If you don't, fine.'"

It's been almost a decade since the impulse to greet him with rotten mangos first struck. Back in 1998, as a 32-year-old analyst with investment bank CIBC, he declared that the stock price of Amazon.com would nearly double to $400. Three weeks later it did, and Blodget was a hero. Soon he packed up his spreadsheets — he's never more comfortable than when he is lining up numbers in rows and columns and teasing out their secrets — and moved to Merrill Lynch.

Investors followed the new oracle's every utterance, and bankers wanted Blodget to bless the stocks of companies they were hoping to do business with. The lines on his graphs always seemed to point one way — steeply up and to the right. He wasn't just predicting profits, he was selling a revolution: The old metrics didn't apply. Blodget may have counseled people to own only a small percentage of Internet stocks — 10 percent at the most — but nobody listened.

Launched in 2007, Silicon Alley Insider is gaining on some of its established rivals.
Source: Compete

Then came the crash. Five trillion dollars in wealth vaporized in 24 months, leaving behind unquantifiable amounts of rage among the masses of day traders who had believed briefly that they, too, were market savants. When the bubble burst, so did Blodget's aura.

Still, it wasn't the crash alone that crushed him. It took Eliot Spitzer to turn Henry Blodget into that Henry Blodget. Spitzer, then New York's crusading attorney general, investigated Merrill in 2001 for conflicts of interest. He discovered a clutch of emails from the young analyst showing that while talking up certain stocks to clients, he was trashing them internally. Companies like 24/7 Media, Excite@Home, and InfoSpace — firms Merrill was publicly cheering — in private were deemed by Blodget to be "shit," "crap," and "junk" (respectively). According to Spitzer's findings, Blodget would have pulled in $12 million in 2001 — quadruple his earnings in 1999 — if he hadn't accepted a buyout that year. In 2003, Merrill's boy genius agreed to pay a $4 million fine and accepted a lifetime ban from working in the securities industry.

Public disgrace usually drives a person into hiding, or at least into a different career. Jerry Levin, the brains behind the disastrous AOL-Time Warner merger, today runs Moonview Sanctuary, his wife's spa; Spitzer, forced to resign as governor last summer, is currently discovering the joys of real estate management; Health South CEO Richard Scrushy, while on trial for accounting fraud, became a televangelist. Not Blodget.

One former colleague says Blodget spent the months when he was being investigated trying to grasp why he was singled out for something that was commonplace in the industry. He figured the controversy would blow over once the public realized his conduct was not unusual. "He was incredulous that the investigation got traction; he said it was silly," a friend says. But there was too much anger in the wake of the bubble, and Blodget's embarrassing emails made him an easy scapegoat. Later, when he was inclined to argue his case, the settlement terms prevented it.

So Blodget did what came naturally. He began writing about the companies he used to cover, first for Slate, then on his own blog, Internet Outsider. Was this journalism — or was it therapy? Rather than hide, he started saying in public what he had once said only in private, using the same brutally frank voice that got him in trouble with Spitzer. He marketed his notoriety to a new Web readership hungry for smart, independent analysis.

When Ryan, an Internet Outsider reader, approached him about starting an industry news site, Blodget jumped at the prospect of a bigger stage. Before working on Wall Street, he'd been a freelance writer; now he could combine the two vocations, borrowing freely from both journalism and equity research.

Through Alley Insider, Blodget is trying to erase, post by post, Spitzer's portrait of him as a duplicitous, money-grubbing shill for big business. Blodget has always believed that the Internet changed everything, so naturally he believes it has the power to change the world's perception of him. The venue offers all Henry, all the time (and even when his other writers are posting, it's clear they're channeling him). The result is a unique blend of x-ray analysis and tech evangelism.

As we talk, Blodget gets up from his chair, antsy to return to his laptop. I ask him if he understands what he's up against. If the hate has lasted this long, why expect it ever to fade away? "If all I knew about me was what I read during that period," he says, "I'd probably have the same reaction."

On a late summer morning, Blodget waits in the lobby of the Nasdaq building in midtown Manhattan. He's all banker today: blue suit, red tie, black cap-toed Oxfords, his shirt so deeply pressed there are creases down the sleeves. It's 10 am and, ready for his second breakfast, he pries open the plastic case of a turkey and Swiss sandwich and starts wolfing it down. In a few minutes he is supposed to conduct a video interview for Yahoo's Tech Ticker finance site. As soon as Blodget started appearing as a regular host in February, the Furies reemerged. "Did you not find any other decent, credible guy than Henry Blodget?" one of the first comments read. "Why spoil this new feature with such a scum and spoil the Yahoo reputation?"

As producers prepare to tape the show, Blodget wipes his crumbs off the table. He explains the guiding vision behind Alley Insider. "We don't want to do things we don't care about," he says. "It's nice to say theoretically we're the judge of what's important and what's not, but come on, give readers credit. They'll tell you immediately what they want, and that drives coverage. People are fanatically interested in Apple, Google, Microsoft. It wasn't a tough call to know what to write about."

Blodget's focus on content is matched by his apparent indifference to the look of the site. Alley Insider employs a cookie-cutter template of scrolling headlines and thumbnail photos dragged off the Web. But design limitations notwithstanding, by September the site was getting nearly 500,000 visitors a month, rivaling AllThingsDigital.com, the Wall Street Journal blog edited by Kara Swisher and Walt Mossberg. Since the beginning of the year, traffic to the site has more than doubled, and Blodget's words now carry surprising weight. When he reported early this fall that Steve Jobs may have been rushed to the hospital after a heart attack — citing an anonymous (and, as it turns out, fraudulent) post on a minor user-generated news site run by CNN called iReport — Apple's stock dropped nearly 10 percent. Critics blamed Alley Insider.

"I read The New York Times, The Economist, and Alley Insider," says Scott Galloway, head of investment equity firm Firebrand Partners, who is best known for his successful public fight to get on the board of The New York Times. "Henry takes a no-mercy, no-malice approach to Web business and media." Valleywag recently called him "the disgraced stock analyst everyone now listens to."

The team at Silicon Alley Insider (left to right): senior editor Dan Frommer, COO Julie Hansen, cofounder Kevin Ryan, and editor in chief Blodget.
Photo: Mike McGregor

For all the success today, it took Blodget & Co. some time to figure out a winning formula. When Ryan, a New Yorker, launched the site in 2007, he wanted to cover the local startup and media scene. Blodget signed on as CEO and editor in chief, bought a minority stake, and hired Forbes journalists Peter Kafka and Dan Frommer to help him develop content (Kafka was later hired away by AllThingsD). The first few weeks, the site read like a tourist's guide to spotting B-list Internet companies in the big city, with each firm's location prominently announced: "NoHo-based Meetup has quietly launched a Facebook application"; "Flatiron-based YellowJacket Software has raised $1.25 million." Blodget branched out, taking on the bigger names himself — Apple, Dow Jones, NBC, JP Morgan. It quickly became clear to him that New York's tech industry was too small an arena to contain the ambition of the site. And nearly half the readers were in California anyway.

Alley Insider soon dropped its Silicon Alley focus but stuck with the moniker. And Blodget began to draw more heavily on his research experience. He created financial models of the companies he was talking about and posted the spreadsheets as Google docs so anyone could download and toy with them. He analyzed the potential revenue YouTube could bring to Google, mapping out his assumptions about viewership and ads watched, and offering a clear bottom-line conclusion. Readers weighed in with their critiques, which Blodget used to sharpen the model. He figured he wouldn't just write about Wall Street, he would also usurp part of Wall Street's business by providing high-quality research, the kind brokerage customers used to prize.

But visitors to the site wanted more than analytics. They also craved the edgier Henry of the Spitzer emails. Blodget obliged. In one post, Blodget declares New York Times economics columnist Ben Stein to be either "an idiot" or possibly just "delusional." He suggests that the anonymous sources cited by archrival TechCrunch in its reporting on Microsoft's attempt to purchase Yahoo "must have been drunk." And in November 2007, when E-Trade lost $9 billion in value as its risky mortgage bets turned to dust, Blodget offered only one piece of advice to the company's shareholders: "Cry."

"On Wall Street, I'd consistently submit a report that would say, 'This is going to be roadkill,' and it would come back rewritten as 'We see some weakness,'" Blodget says. "Now I can say, 'It's going to be roadkill.' That's very satisfying."

But even as he delights in railing against corporate giants, he's still disciplined enough to run the underlying numbers — Blodget loves the drama, but he loves the spreadsheets just as much. One post about craigslist should have been something only an accountant could love: a complex set of assumptions and analyses to determine what the company might be worth. Yet Blodget wrote the whole exercise as if it were a mystery plot, parceling out details and stringing the reader along until the very end.

When Yahoo announced this summer that it had hired Bain & Co., a consulting firm usually brought in when a company is about to start swinging the ax, Blodget sharpened his own pencil. "We're mad as hell ... especially now that Yahoo's wasting millions on Bain." He offered his own, free advice (spreadsheet attached) cataloging how many people Yahoo should fire in each division — 1,804 from its "positively obese" sales and marketing arm alone — in order to goose operating margins to a "more respectable" 20 percent from its current 7 percent. "He pushed us early on to ask, 'What does this mean for profits? How does any news affect a company's numbers?'" Frommer says. "It's great if it makes a company look bad or look good, but is this really going to affect the numbers?"

Blodget is also trying things that no mainstream-journalism-trained blogger like Swisher or GigaOm's Om Malik would ever dare. He makes serious-sounding offers to buy companies that he wants to demonstrate are significantly undervalued. It's pure showmanship, but with Blodget's background in finance and his ties to folks up and down Wall Street, no one knows just how far he will take the joke.

His first target was CNET. With the slightest of winks, he wrote post after post explaining how he'd purchase the company. At first he proposed a sort of reverse merger, with CNET buying Alley Insider for $50 million in stock, at which point Blodget's team would take over every aspect of the company. Then he detailed the operational changes he would make.

Ryan got nervous about Blodget's new direction. Blodget's deal with the government forbade him from giving individual research advice, but it didn't say anything about jumping into the private-equity space. Still, there might be legal issues. "Look, why don't we run this by a lawyer just to make sure, because we're getting into securities stuff here," he said to Blodget. When the lawyer asked them "Is this a real offer?" there was a brief silence. For the first time the two really thought about it.

"You know, yes," Ryan replied. "If they said yes, we would accept $50 million at that time to buy them. So it is a real offer. But we're actually asking them to buy us." The lawyer signed off on the convoluted reasoning.

After Blodget's taunting posts went up, investment firm JANA Partners announced a hostile takeover attempt of CNET. It failed, but by spring 2008 CBS stepped in to buy the company for $1.8 billion.

For one CNET executive, memories of Blodget's unwanted attentions still rankle. "The way you make a big name for yourself on the Web today is to make, for lack of a better word, ridiculous statements," says Zander Lurie, former senior VP of strategy and development at CNET and now CFO of CBS Interactive. Lurie found himself reassuring employees who sent him Blodget's postings and wondered whether their company was at risk. "Everyone knew there was nothing in the offering: He didn't have the capital, the expertise, or any specific insight into our business," Lurie says. "He makes the ridiculous statement and it gets sent all around, and then he claims credit when there's an event the following year, which obviously he had nothing to do with. Less than zero to do with. We all have reputations. And his track record is well known."

Blodget has been waging another half-serious acquisition fight, this time for the New York Times Company. All he wants is the Web site — the print side is dead, he says. He thinks the paper needs to cut about 80 percent of its costs, at which point it would be the perfect size to be the digital paper of record for a long time to come. "It's a serious offer from our perspective, but it hasn't been taken seriously," Blodget says.

In the wake of Wall Street's latest meltdown, Blodget finds himself in even greater demand. He's doing regular TV appearances and is posting again on Slate. When NPR wanted someone to talk about the Wall Street culture of greed, they brought in Blodget. The reporter introduced him by pointing out that Merrill is now gone, "and Henry Blodget is gone, too; he's banned from Wall Street after being charged with fraud."

"Thanks," Blodget said, stuttering for a second, "especially for that horrific introduction." They both laughed. But by the end, the host was treating Blodget like an elder statesman.

Recently Blodget has been expanding his franchise. He and Ryan have launched two sister sites: Clusterstock, which will compile and analyze Wall Street research on a much wider range of industries, and the Business Sheet, which will focus on corporate scandals. A third is in the works. For each new site, Blodget provides the bulk of the early posts, seeding the new enterprise with the Blodget touch.

Blodget is broadening beyond tech to get ready for what he sees as a coming shakeout in the news-blog industry. He says he might even start making acquisitions if the price is right. Ryan's suite of companies has raised $50 million in the past few years, possibly enough to buy out some other interesting small blogs. The winning formula for this new kind of business remains elusive: It's a matter of finding the balance between gossip and analysis, between aggregating news from other sources and doing original reporting. Revenue models that go beyond basic advertising have also been slow in coming. "If you look at the development of every new medium, there's been a new form of journalism that has been made possible by it, and there has always been this period of transition," Blodget says. "There is collective experimentation as people figure out what works and what doesn't, and usually you have some very important publications that are built."

Another way to expand is to sell to a larger media company. Blodget says he'd consider an offer, but Alley Insider is still defined almost entirely by one man. If he left, the value would plummet. Also, some media institutions — the grayer, stodgier ones — may find Blodget's unique baggage unacceptable. The endless barrage of comments, the angry mob that seems to follow him everywhere, may be too much for the sensitivities of some management teams, even in these freewheeling days of media transformation. When Blodget wrote a few small items for The New York Times, the newspaper's ombudsman went haywire. "The Times luster may help Blodget," he wrote last year, "but some of his taint rubs off on the Times."

It's just the sort of comment Blodget has come to expect from, well, everyone. That may change, but only if this latest reinvention succeeds in burying his past forever. In which case, he will have been right: The Internet really does change everything.

Senior writer Daniel Roth (daniel_roth@wired.com) wrote about the future of the electric car in issue 16.09.

Floating 190 miles above the Earth's surface, the extraplanetary crash pad known as the International Space Station careens through the sky at an average of over 17,000 miles per hour, making almost 16 Earth orbits a day.

Set for completion in 2011, it's been 10 years since construction first began on the ISS. The final version will double its current capacity of three residents to six and provide incalculable contributions to science. In honor of its 10th birthday, we've assembled some of our favorite photos from the space station's lifetime. Click through the gallery for a glimpse at one of the world's most impressive sci-fi realities.

Left:
Astronaut Piers J. Sellers moves along a truss on the International Space Station, while space shuttle Discovery is docked in July 2006.

The Soyuz TMA-13 spacecraft approaches the International Space Station with Expedition 18 on Oct. 14, 2008. Visible in the background is the southeastern coast of Tunisia (left), the Gulf of Gabès and the Isle of Jerba (bottom center). Top of the picture points northwest.

The Expedition 18 mission brought NASA astronaut Michael Fincke and Russian Federal Space Agency cosmonaut Yury Lonchakov to the ISS for a six-month stay that relieved two other astronauts of their posts.

Of particular note to Wired.com readers: Videogame icon and now space tourist Richard Garriott (known as Lord British in the Ultima series) tagged along on the expedition for 12 days before returning to Earth on Oct. 24.

The International Space Station is seen here in front of the Earth's horizon, photographed from the space shuttle Atlantis as it moves farther away June 19, 2007.

During the departure and fly-around, the Atlantis crew got a look at the station's newly expanded configuration, which included the retraction of an old solar array and the unfolding of a new one on the starboard side of the station.



During a seven-hour, 19-minute spacewalk, astronaut Scott Parazynski cut a snagged wire and installed homemade stabilizers to strengthen a damaged solar array. Parazynski is anchored to a foot restraint on the end of the Orbiter Boom Sensor System.

Mission STS-120 was flown by the space shuttle Discovery and delivered the Harmony module. The module, among other things, added 2,666 cubic feet of living space and completed the U.S. core contribution to the ISS.

Best known for the insulation-foam scare after the Columbia tragedy, STS-118 found Endeavour with a puncture in its heat shield. Fortunately the fears that the exposed foam would lead to another catastrophe were needless.

Endeavour's orbital-maneuvering-system pods and vertical stabilizer are visible in this photo as it docks with the International Space Station. The mission successfully delivered its supplies and modules.

On mission STS-122, European Space Agency astronaut Hans Schlegel works to replace a nitrogen tank used to pressurize the station's ammonia cooling system.

Pictured in the photo is the exterior of the new Columbus laboratory, which Schlegel traversed during the six-hour, 45-minute spacewalk.

The station's first female commander, Peggy A. Whitson, walks with cosmonaut Yuri I. Malenchenko (center) and Malaysian space tourist Sheikh Muszaphar Shukor, who is also the first Malaysian in space.

The astronauts are wearing Russian Sokol launch-and-entry suits for Expedition 16. The crew launched from the Baikonur Cosmodrome in Kazakhstan on Oct. 10, 2007, and arrived at the ISS on Oct. 12.

In this photo, the Expedition 1 crew members are still training for their upcoming mission a week-and-half prior to the Oct. 30, 2000, launch to International Space Station.

They are (left to right) Soyuz commander Yuri P. Gidzenko, Expedition 1 commander William M. (Bill) Shepherd and flight engineer Sergei K. Krikalev.

As the first residents of the ISS, it was this crew's job to unpack all the supply boxes and move in. They stayed a little over four months before returning to Earth.

This view of Hurricane Felix was taken from the International Space Station on Sept. 3, 2007, with a 28-70mm lens set at 28mm focal length.

The ISS was located nearly over the coast of eastern Honduras when this image was taken. At approximately noon GMT, Hurricane Felix was moving west at 21 miles per hour. The sustained winds were 165 miles per hour with higher gusts making it a category 5 hurricane.

Photographer Bill Ingalls has traveled the world as a photographer for NASA since 1989. Honored by United Press International as one of the top pictures of 2007, Ingalls' photo of the Soyuz TMA-11 spacecraft shows it being transported by train to its launch pad at the Baikonur Cosmodrome in Kazakhstan.

The spacecraft launched two days later, bringing the Expedition 16 crew to the International Space Station.

Russian Federal Space Agency cosmonaut Oleg Kononenko, Expedition 17 flight engineer, uses a communication system in the Zvezda service module of the International Space Station on July 17, 2008. The Russian module provides living quarters and life-support functions.

1998: The space shuttle Endeavour lifts off from Cape Canaveral, carrying the first American-built component of the International Space Station. Two days later, the connecting node known as Unity is coupled with Zarya (Sunrise), the Russian-built control module, and the space station is a reality.

Following a flawless ascent, the crew of six — five Americans and a Russian — maneuvered Endeavour to within a robot-arm's length of Zarya, which had preceded the shuttle into space on Nov. 20. Once the shuttle had a firm grasp on the Russian module, the job of joining Unity and Zarya began.

Three spacewalks were performed to connect electrical and communications systems, and once the two components were functioning harmoniously, mission specialists began preparing the space station to receive its third module, which the Russians sent up the following year. The Endeavour astronauts also tested Zarya's battery supplies before heading home.

The space station's third component was the service module, which arrived in July 1999. This represented a huge piece of the overall puzzle, housing as it did the first living quarters for a station crew.

The International Space Station was assembled gradually, with most of the world's space-faring nations providing specific components, which were then delivered on a regular basis by U.S. and Russian cargo ships. Following the loss of the shuttle Columbia in February 2003, the Russians took up the burden of shuttling supplies and components to the ISS until the shuttle program was back on its feet.

Now, a decade later, expansion of the space station continues. It is easily the most expensive construction project in history, and it got a little more expensive on Nov. 18 when a spacewalking astronaut lost her tool bag.

Endeavour, incidentally, was named after 18th-century explorer James Cook's ship. Cook, of course, was an Englishman, hence the British spelling of the word. The shuttle is currently scheduled to be decommissioned in 2010.

Source: Various