Altaba Inc. (formerly Yahoo) Message Board

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Technology Stocks : Altaba Inc. (formerly Yahoo)

AABA 19.63

0.0%

Nov 6 4:00 PM EST

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To: Bill Harmond who wrote (2092)	10/20/1997 12:17:00 PM
From: peter grossman	of 27307

Pretty obvious assumptions I'd say. If MSFT is going to go into this, they're not going to be content with a small slice. Why would they be? It wouldn't make sense. But just for the sake of argument, let's say they get only 10%. That's 10% Yahoo doesn't get. They are already valued as if revenues are going to remain on an exponential curve for many several years. Even a 10% slice out of the potential reduces the chances of actualizing that curve. Much more hurtful for the Yahoos is price pressure. More competition for eyeballs equals lowers prices. This is inescapable. Again, the potential revenues for the sector shrinks. Yahoo is valued as if its market share will grow in a vastly growing market. The fallacy is that as the market grows, so will competition and price pressure. That this is already happening with the worst possible competitor is a recipe for a market cap only 3 times Excite's, for starters.

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