Yeah, but that is just a small part of MSFT's business, so the 'revenue' from the Net wont impact MSFT's stock price like pure-plays like YHOO.
I agree. In fact, I think Microsoft makes very little money off it's web properties. But it's interesting to consider that Yahoo is able to justify a $70+ billion market cap based on advertising revenues which are driven by customer usage of it's web properties. If Microsoft enjoys greater customer usage of it's web properties than Yahoo does - well, what is that worth in terms of market cap with regard to MSFT? (I don't think the market values Microsoft's web property usage at anywhere near the multiple granted to Yahoo).
By the way - I just heard on CNBC that both the CFO and COO of DrKook.com resigned today:
dailynews.yahoo.com
And what is amazing is that institutions apparently were accumulating KOOP up through March 31:
insiderselling.com
And it appears that many of the institutions that bought KOOP prior to 3/31 held their positions through the stock's 90% decline since 3/31:
biz.yahoo.com
But of course, you would think that a 90+% stock price decline, CFO and COO resignations, layoffs (35% of staff to date) and mounting losses (company announced they were going to miss estimates today) - you would think all this might result in at least one Wall Street analyst issuing a sell recommendation. Well if you were to think such a thing, you would be wrong - because currently, KOOP has 1 buy and 4 hold recommendations:
biz.yahoo.com
InternetFundManager: Hold reiterated May 29, 2000
E*Offering: Hold reiterated May 16, 2000
Chase H&Q: Market Perform reiterated April 26, 2000
WR Hambrech: Market Neutral reiterated Feb 16, 2000
Robinson Humphrey Co: Buy maintained Nov 11, 1999
-Eric |
