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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: jawd who wrote (12629)7/10/1998 9:49:00 PM
From: David R  Read Replies (2) of 27307
 
So you expect Yahoo to have a market cap of $100B+ in three years. One bad report on the effeciveness of Web advertising (just how many people actually click on those flashing advertisements anyway) could push add revenues through the floor. Then you have competition from Disney/Infoseek, Netscape, etc. If all you see is 10X upside potential and "Not much of a downside" then I would suggest that you take another look.

There is a downside that Yahoo will be a 10th of its current value. Not a certainty, but a risk. Study the history of other companies with wildly excessive P/E and P/R. The uncertainty of YAHOO makes for a possibility of 300+ share price. But that same uncertainty could make 50 seem good. I suggest that you consider how happy you will be with 25% of your investment or less. If YHOO heads south, it won;t stop at $100. Of that you can be sure.
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