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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: Mike Farrar who wrote (9330)4/9/1998 2:53:00 AM
From: Doug Fowler  Read Replies (4) of 27307
 
A $5 billion market capitalization for a $30M quarter?

Let's look at this in a few ways.

1. Annualized, that is $120M, or 40 times annual sales.

2. Annualized, that is 300:1 P/E ratio.

3. Let's say Yahoo doubles sales next year and the following year. Then we have a current market cap of 10 times sales and a 75:1 PE ratio.

4. Sequential growth over last quarter was just 20 percent, which is lower than previous quarters.

5. 95 million page views a day. That is impressive. But why aren't their sales higher? And why only a 20 percent growth in sequential revenue when page views were up 45 percent? At once cent per page view (and Yahoo often charges much more, as much as five cents per page view), the number would be $90M per quarter.

6. So, Yahoo has a lot of pages it is NOT currently selling. That means they CAN sell a lot more, but there aren't enough people to BUY the page views. That would indicate Yahoo is lowering its prices.
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