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Technology Stocks : Altaba Inc. (formerly Yahoo)
AABA 19.630.0%Nov 6 4:00 PM EST
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To: Bill Wexler who wrote (728)6/14/1997 12:30:00 AM
From: Bill Harmond   of 27307
 
>>Considering that the survey consisted of 200 respondents accounting for about 127 million in one quarter, I wouldn't exactly be turning backflips.

First of all, I'm not doing backflips, but 20% sequential quarterly industry growth is about as fast as it ever gets. That's over 100% annual growth. No other industry is growing that fast on a nine-figure base.

Secondly, those 200 respondents didn't enjoy an equal share of the pie, and the largest chunk went to Yahoo. As is the case in most industries, 80% of the revenue is probably controlled by 20% of the players.

>>How do you justify a 1 billion market cap for a money-losing operation like Yahoo?

$1 billion isn't what it used to be. A US major-market television station goes for nearly a billion bucks these days and they're in a mature sunset industry with declining audience share.

Who says Yahoo is losing money? I see a company at break-even a year ahead of schedule, gaining market and revenue share, leading in industry revenue, projected to make about $.50 next year. 60x forward earnings for a business opportunity like Yahoo seems quite reasonable.

Internet advertising is a real business now, and Yahoo is a top tier player.

I spent my entire career in network television sales. Media is essentially a fixed-cost business. Once revenues pass overhead margins can explode. Everything is gravy. Yahoo has the brand equity and circulation to be an obscenely profitable business.
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