SI
SI
discoversearch

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 19.630.0%Nov 6 4:00 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Jumper who wrote (1744)10/4/1997 6:32:00 AM
From: Bill Wexler   of 27307
 
To Yahoo! or not to?! .........Not!

The current market cap for Yahoo! now stands at about:

$2,500,000,000

Let's say that instead of shelling out $2.5 bil. for a web site, you invested in high-quality tax-free munis. Assuming a 3% yield:

$75,000,000/year income (remember, that's tax free)

How many little ads do you think Yahoo is going to have to sell before it earns $75 mil. per year *after* taxes?

I've stopped trying to figure out when this bubble will stop inflating, but one thing's for sure, there are a lot of people out there who bought in late...perhaps without really studying the company or considering the astounding risk at these levels.

They're in for a nasty surprise.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext