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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: FDHIII who wrote (12559)7/10/1998 3:20:00 AM
From: Bill Harmond  Read Replies (1) of 27307
 
The lower rates go, the farther-out investors are willing to discount earnings, because those future earnings become more valuable compared to fixed-income securities. Since these companies' earnings are quite far out, low interest rates are critical. If long-term tates should rise, especially above 6.5-6.75%, then high-pe (or no-p/e) stocks like these would probably suffer badly, like winter, 1997.
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