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Technology Stocks : Altaba Inc. (formerly Yahoo) -- Ignore unavailable to you. Want to Upgrade?

To: fut_trade who wrote (23460)	8/4/1999 9:13:00 PM
From: larry	Read Replies (1) \| Respond to of 27307

I am not arguing that YHOO! and AOL are NOT two of the best internet plays all around. I think that these are very good companies (I also like AMZN as a company!), and of course, YHOO! especially. However, the stock price has definitely run way ahead of any fundamentals and that's why these issues can drop 50% without any signficant bargin hunting going on. Name me another blue chip issue that sees its share price drop 50% in the best bull market when the fundamentals are "only getting stronger on a daily basis" (I am quoting Steve Case BTW). Eventually, these nuts will have be to evaluated using traditional valuation model and it will be very hard for issues like AOL to trade above 100 forward PE when the company matures. I am not sure when AOL will make $1.75. I guess in 3-4 years in relatively optimistic situation. Then it should take that long for AOL to climb toward $175. And I also believe that numerous MOMOs get totally burnt out in the nut downturn. Those lucky guys who are not called out by margin police will provide strong technical resistance when the nut issues recover. In AOL's case, this is not the same 15 billion company that it stood a year ago. This is a 100 billion company that is trying to climb the mountain to get back to 200 billion. Very remarkable task. larry