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Technology Stocks : Netscape -- Giant Killer or Flash in the Pan?

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To: Mike McFarland who wrote (2687)4/6/1998 2:25:00 PM
From: Winter   of 4903
 
>>I couldn't help but notice that the market capitalization of Netscape is around 1.6B, while Yahoo is 4.6B, does this seem absurd to anybody besides myself. <<

Yes, both valuations seem absurd :-)

>>Bill Gates is worth 30 or 35 times more himself than the value of one of the most important companies on the internet.<<

Comparing the wealth of an individual (BG) against a company is silly. I can see the comparison of NSCP against MSFT and considering the breadth of MS products vs what NSCP produces the valuation multiple does not seem ridiculous (actually quite the opposite).

Calling Netscape one of the most important companies on the internet is questionable. Netscape was an important part the internet growth in the past but current the stock price has to reflect the future not the past. The sad fact is that Netscape's role in the internet is "just another player". In other words there are other software companies that offer the same products (better or worse).

People seem to hold Netscape in high regard because of sentimentalism rather than just looking at the facts from a business perspective. Looking forward, is this a 1.6B company? More? Less?
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