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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: Randy Ellingson who wrote (19838)2/9/1999 3:16:00 PM
From: Howard Hoffman  Read Replies (1) of 27307
 
<<Can Yahoo have a market cap of $100B in five years?>>

Try putting together some numbers and answer for yourself.

MSFT has monopoly power and sells for 29 x Rev
CSCO is a market leader in a competitive market and sells for 18 x Rev

Let's say YHOO will be more like CSCO in 5 yrs, than MSFT. Will YHOO have $100B/18 = $5.5B in Revenue?
YHOO currently has $200M in revenue.
YHOO would need to increase revenue by factor of 28 in 5 yrs
2 to the 5th power = 32
YHOO needs to almost keep doubling revenue every year for 5 yrs to be worth $100B

Do you think YHOO will continue to double revenue each year for 5 years? (Actually 95% rate of annual increase works to 28)

Or do you think that 5 years from now people will still be saying they can value YHOO on the basis of momentum?
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