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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: emichael who wrote (1792)10/6/1997 7:11:00 PM
From: Bill Wexler   of 27307
 
Well...let's compare to Yahoo!

SEEK: market cap = $263 million P/S = 16.5

YHOO: market cap = $2.8 billion P/S = 75.2

Of course, the Yahoo bulls contend that Yahoo is still cheap because of that incredibly valuable Yahoo brand name. However it's interesting to note:

LCOS: market cap = $467 million P/S = 22.3

XCIT: market cap = $455 million P/S = 16.5

So you could buy ALL of the competing search engines for 42% of Yahoo's price, get a much better revenue run rate (they're all losing money however), and have about $1.5 billion left over for a rainy day.

You could also buy nearly all of Netscape at the current market price. Netscape however, has a P/S of about 6 and actually has about $32 million in trailing earnings.
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