Since others responded other than Jim, let me also try:
Yahoo's next 4 quarters can easily look like this: .15, .19, .24, and .31. This is relatively conservative, given that Yahoo's management is projecting 200% or 3x revenue growth for as long as the eye can see. Yahoo's forward earnings numbers would therefore be .99. At 180 a few weeks ago, Yahoo would have had a forward pe of 180, which was lower than it's revenue growth rate anyway. At 337 after hours, it is no longer under it's growth, but not selling at nearly as high a pe as a year ago. We also get the addition to the S&P, a certain split, and lots of international news which would make one question Aol's isp model, but support Yahoo's advertising model.
That's it. Having said all that, I will be unloading Yahoo 180's as fast as I can get rid of them prior to Yahoo's earnings. |
