"Never discount the value of an installed base."
Who said that, Atari, Novell, Wang, Apple, (or Yahoo!)? <g>
>>There are over 60,000 website links back to Yahoo pages.
Oh STOP! You know this is trash. 98% of those links are moronic and completely non-commercial. I could put a Yahoo link on my airedale's home page and you'd say 60,001. So what. Once you get past the top 2,000 or so web sites, you're really getting into redneck area. I don't doubt that YHOO gets a lot of hits. I'm doubting that the value of those hits is 180 times what those hits will EARN next year, and I'm doubting that those earnings will continue to double or triple for each of the next 5 years.
How much value do you attatch to sites 10,001 - 60,000 that link back to Yahoo? maybe a million bucks, TOPS? Or to put it another way, how much value would YHOO lose if they all cut their YHOO link? Probably not a lot!
Or to put it yet another way, if I started a new site and PAID $5,000 to everyone who added my link to their page, how many links could I garnish for $2.5 billion (YHOO's 'excess' market cap)? Answer: about 8.3 TIMES AS MANY AS YAHOO HAS GARNISHED. How many would do it for 25 bucks instead of 5,000!
Put THAT in your valuation formula <g>. That 60,000 is a dangerous figure if you start to think about it in relation to YHOO's mkt cap. |
