Altaba Inc. (formerly Yahoo) 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.

Technology Stocks : Altaba Inc. (formerly Yahoo)

AABA 19.63

0.0%

Nov 6 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Mighty_Mezz who wrote (922)	7/10/1997 2:01:00 PM
From: Bill Harmond	of 27307

You bears keep looking for a reason why Yahoo is a bad investment, but the fact is the stock keeps defying your analysis. The reason is franchise value. America Online's stock increased 30x before it turned an operating profit, and Yahoo's business model is better leveraged than AOL's. I strongly suggest you think about what happens when break-even occurs with an advertising model. Yahoo is keeping costs contained very well, and is only 20% sold. When net revenues grow past break-even, virtually EVERY dollar will flow to the bottom line. That P/E will fade very quickly. For example, Montgomery just doubled this year's earnings estimate based on last quarter's results. The earnings leverage here is tremendous, and unlike AOL there's no networking and customer support costs. That's why the stock keeps running against you.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next