UPDATE: Morgan Stanley Downgraded Changyou.com: Shares Expected to Underperform, First Quarterly Loss

In a report published Monday, Morgan Stanley analyst Timothy Chan downgraded Changyou.com Limited (NASDAQ: CYOU ) from Equal-weight to Underweight and lowered the price target from $40.00 to $26.00. Chan noted that although Changyou's investments will likely drive long-term growth, shares are likely to underperform near-term and will lead to