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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: James Thai who wrote (86399)	12/6/1999 6:14:00 PM
From: Eric Wells	Read Replies (3) \| Respond to of 164684

As of today, Yahoo has a market cap of $74 billion - with annual revenue running at $465 million and annual net income at $34.5 million (per Edgar SEC filings). Microsoft had a market cap of $74 billion some time in mid 1996 - Microsoft's stock price was the equivalent of approximately $14 per share at that time. Yet for the fiscal year that ended June 30, 1996, Microsoft reported $4.6 billion in revenue and $2.1 billion in after tax net income. That's 10 times Yahoo's current revenue, and 60 times Yahoo's current net income. One could argue that Microsoft and Yahoo have completely different business models - this is true. But one could argue that Microsoft has the ability to realize much higher margins via producing software, than Yahoo can realize by offering services in search, ISP, email, ecommerce, etc. I guess the factors that go into pricing stocks have changed - dramatically. -Eric