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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: Smart Investor who wrote (10229)4/17/1998 1:20:00 PM
From: Winter  Read Replies (1) of 27307
 
>>The search engine companies are also very risky. Basically, they are in a business with very low entry barrier. Anybody can start such a business<<

Yep, these companies are priced for the rosey internet growth scenarios like each one of them is going to carve up a majority share of the pie. What they are not counting on is other big players joining the fray. Things change much too fast with the net to make projections years in advance. And people aren't that loyal to particular sites, I've switched which search engine I use several times in the past few years.

That leaves us with no real way to value these companies so the price is determined basically by supply and demand and not by any real valuation methods. Sooner or later the earnings will not pan out as expected and then the valuations will be adjusted accordingly.
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