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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: Rene Madsen who wrote (19833)2/9/1999 1:42:00 PM
From: Howard Hoffman  Read Replies (1) of 27307
 
In the long run, the value in any stock is represented by earnings. One will pay a premium for earnings that are growing. One will pay a great premium for earnings that are growing fast and can be expected to continue to grow. One will pay a great premium for revenue that is expected to grow because it presents the opportunity for great future earnings.

On the above bases, YHOO has value. YHOO deserves a great premium. YHOO does not deserve to trade forever without regard to price or P/E or P/R. The longer it has traded without regard to P/E or P/R, the greater the risk. The greater the number of people making posts like "You don't understand the Internet. Earnings don't matter. P/R doesn't matter.", the greater the risk built into the current price. There still is restrained volume on this current e-stock correction. We are not near a bottom yet. Hence, I conclude that the probability that we are still headed down.

Some day YHOO may be worth $200 (post-split prices of course). It is not now. It is not worth $200 on any valuation method. It was only worth $200 (briefly) because there was a greater fool out there to pay that price. Your chance of selling at $150 appears to be going pretty quickly here.
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