MDA - Market Direction Analysis Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MDA - Market Direction Analysis

SPY 689.23

0.0%

Jan 23 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: fedhead who wrote (34832)	12/6/1999 9:37:00 PM
From: Casaubon	Read Replies (1) of 99985

The jist of the argument, as I understood it, was that Yahoo is already very far behind where MSFT was at this point in its evolution as judged by revenue and earnings. As of today, Yahoo, at it's closing price of 280, has a market cap of $74 billion - with annual revenue running at $465 million and annual after tax (and after non-recurring expense) net income at $34.5 million (per Edgar SEC filings). Microsoft had a market cap of $74 billion some time in mid 1996 - Microsoft's stock price was the equivalent of approximately $14 per share at that time. Yet for the fiscal year that ended June 30, 1996, Microsoft reported $4.6 billion in revenue and $2.1 billion in after tax net income. That's 10 times Yahoo's current revenue, and 60 times Yahoo's current net income. One could conclude that YHOO is 60X overvalued relative to where MSFT was at in 1996. And this assumes that MSFT is "fairly" valued.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next