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 (3282)	11/29/1997 10:09:00 AM
From: santhosh mohan	Read Replies (1) of 27307

** Warning: Lengthy and possibly irrelevant. ******************** I'm amazed that you are attempting to rationalize Yahoo's valuation based on this concept of an "Internet land-grab". At the moment this stock is defying gravity purely due to three reasons - their earnings have surprised on the upside, there is a small float and the charts look good if you are using a black-box TA approach. Combine this with a December rally and year-end window dressing by portfolio managers, then the stock could hold at these levels. However, take away any one of the three supports to this stock and you better watch out below. Somebody on this thread mentioned funding their grandkid's education with this stock. I found this extremely imprudent considering the risk involved. Yahoo does not have a global franchise along the lines of a Coca Cola or Nike. True, they were pioneers in the search-engine business, and they have not yet fumbled. However, Netscape must have felt invincible in early 1996 and we know what transpired since then. AOL has a better business model than YHOO, has beaten the competion from Compuserve, Prodigy and even the mighty Microsoft, and their stock is more reasonably priced than Yahoo (if one can use the term reasonably priced in the context of Internet stocks). I think the analogy to cable company valuation is totally misplaced considering the near monopoly status given them by the logistics of laying cable. Since then threats to their business have surfaced from technological innovations such as satellite transmissions. Bill Gates' recent investment in Cablevision has boosted these stocks, but he has also invested in Teledesic, the satellite venture with Craig McCaw. But that is an entirely different discussion. William, your repeated attempts to highlight the weakness in Amazon's charts illustrates the pitfalls in investing in momentum stocks. At the first sign of weakness in Yahoo's charts it will start trending down regardless of any notions of Internet land-grab and such.

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