B'mind, I don't think anyone but 60-Minutes really doubts that Yahoo's business model is viable, but as someone noted on this thread, advertising spending is clearly subject to economic conditions and, since YHOOO depends on ad spending, it is vulnerable. That, together with generally unkind market conditions and its once absurd valuation, is why YHOO is down almost 90%.
My note of caution is that, just as underlying fundamentals didn't prevent stocks of companies with no real, viable business from shooting to incredibly high valuations, they won't prevent real, viable businesses from trading down to equally absurd low valuations.
Does anyone here believe that the market, in the short run, behaves rationally and without emotional influence?
That said, if YHOO gets much closer to a market valuation, even I may buy it. I'm shocked.
Bob |
