Randy,
I agree that sequential quarterly earnings amounts and growth rates won't drive this stock for some time to come. But eventually they will. And if you are, like me, a longer term investor most of the time, the E-word (earnings, not electronic) matters because it will help define where this stock lands. My point is that it will land lower than current prices, by a lot, unless the growth, revenue as well as earnings, becomes parabolic. It's not there yet, not even close, not even at 25 cents a share.
One other thing interested me about your post -- the frantic pace of service improvements and the costs that go with that. Other Net companies, for example Amazon and E*TRADE, have announced business plans in which they spend so much on service and advertising that they are intentionally running large losses for a year or two to come. Yet YHOO hasn't made any such announcement to my knowledge. Do you think they might follow the lead of others and pour so much expense into the service that they -- for awhile at least -- lose money or at least stop growing earnings? If they do, I think they will lose some of their investment following. Some of the longs are attracted to YHOO because, unlike the others, at least they have figured out how to make a little money at this thing.
MAD DOG |
