>>I think Yahoo is a special case. They blew the community away last week.
William -
Could you explain two things I don't understand about enthusiasm for YHOO's prospects 1) where MSFT fits into the picture, and 2) why it's assumed they don't have an Asian exposure.
Did you notice the $60 million MSFT/search engines deal 2 days ago - with XCIT, SEEK, LYCOS, Altavista, and others, with one conspicuous by its absence. MSFT owns a tremendous amount of services and content, where YHOO must lease them. I can see that YHOO will continue to look good during this honeymoon period -- and maybe that's all that counts to todays analysts -- but IMO MSFT is the next MSFT of the internet world. It may take MSFT a few tries to dominate any sector they set their sights on, but if they are determined, they will, and here they are determined. Who would want to bet on the latest clever upstart to go against them, especially when there are no defensible barriers to entry anywhere YHOO tries to excel? How much marketshare is YHOO conceding to MSFT next year and 10 years from now in their stellar projections? The market is so resolutely ignoring competition from MSFT in this sector that one might think that YHOO is a front company set up by MSFT to show the DOJ how meek and defenseless MSFT really is.
Also, weren't YHOO's foreign subsidiaries - YHOO Japan, etc., announced to tremendous fanfare and stock price appreciation a few months ago?
Thanks,
e.b. |
