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Technology Stocks : Exodus Communications, Inc. (EXDS) -- Ignore unavailable to you. Want to Upgrade?

To: DOUG H who wrote (1190)	9/4/1999 4:12:00 PM
From: MulhollandDrive	Respond to of 3664

DougH, Winston may have been thinking that EXDS could possibly react as QCOM did when they had their earnings "warning", translation, "Business is booming, but we may have overshot our original revenue estimate".... As you can see by the QCOM selloff, when a stock is "priced to perfection" the slightest deviation from expectations can cause the stock to be hammered. One big difference though is QCOM was trading at it's all time high when the earnings warning came. EXDS is already about 15% off the high. But your point is also well taken, the revenue adjustment came public in plenty of time for the stock to sell off, instead it closed up for the day. What will happen on Tuesday is anybody's guess.... bp

To: DOUG H who wrote (1190)	9/4/1999 8:46:00 PM
From: Winston Lee	Read Replies (2) \| Respond to of 3664

Hi Doug, Don't take my post the wrong way - I love EXDS - I invested in it this year trading in and out ... it'll go significantly higher over long-term ... just short-term worries. The analyst's downward revision was for Q4. From 42.5 million revenues in Q2, if EXDS grew 40% sequentially, by Q4 the revenues would be 83.3 mil. By having the analysts adjust expectations downward to 75.5 mil., this will allow EXDS to beat expectations handily. However, in the short-term, the market may overreact negatively ("slowing growth") just because the uncertainty is there. Also, I don't set the rules - the market does. I saw what the market did to QCOM, and any high-flyer can be hit over the short-term, even if the strong fundamentals weaken ever so negligibly. Regards,