Steve harmon's Internet Stock Report today talks about relative valuations.
Among them:
AOL $82.2 Billion
ATHM $13.3 Billion
internetnews.com
Excerpt:
<< Consolidation looks like it's creating a mega-power to battle Microsoft. Our belief is that AOL could be the real "next Microsoft" as it works across its AOL online, AOL.com, ICQ instant messaging, and completes its pending merger with Netscape.
AOL's revenue is expanding into the gorilla stage, and no other Internet company (except Cisco) comes close.
For the six months ended December 1998, AOL's total revenues were $1.82 billion, up 63%. Net income soared from $64 million to $228 million. We project AOL revenues will exceed $5 billion annually, which is a fraction of Microsoft's nearly $18 billion annualized revenue. In 3 to 5 years this could be a different story.
Across its various platforms AOL commands an installed user base that begins to rival that of Microsoft, in the 40 million to 50 million user range, although Microsoft reaches about double that with all its applications and OS.>>
Now, this struck me a bit....AOL with total users in the 40 million + range, nearly 20 million paying monthly fees.
...and ATHM with 300,000 + paying users, headed for 2 million.
...and ATHM/AOL cap is 13/82
Don't flame me. I own them both and believe both will thrive. I admit that the relative numbers surprised me.
...and I don't think AOL is overpriced.
Any thoughts?
Brian |
