Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : The Justa and Lars Honors Bob Brinker Investment Club Thread -- Ignore unavailable to you. Want to Upgrade?

To: Justa Werkenstiff who wrote (212)	7/11/2000 2:14:58 PM
From: Justa Werkenstiff	Read Replies (2) \| Respond to of 10065

Whatz up wit Yahoo? Yahoo (YHOO) 101 3/4 -8 1/4: The king of portals reports June quarter earnings after the close today, and expectations are coming down into the report. This is not a familiar situation for Yahoo, which once enjoyed a predictable pre-earnings spike followed by a post-earnings dip. This time, the implosion of many Internet start-ups is creating concerns that Yahoo's ad revenues will suffer in sympathy with dot-com marketing budgets. With its downgrade last week, Deutsche Banc Alex. Brown estimated that 30-35% of Yahoo's ad revenues were from dot-coms. Lehman also expressed concerns back on June 29 when its analysts wrote that they did not believe there is as much upside potential in YHOO's numbers as in previous quarters. The final blow came this morning with Morgan Stanley Dean Witter analyst Mary Meeker's hints that Yahoo might have to guide EPS expectations lower for future quarters due to increased spending on marketing and/or pursuit of wireless opportunities. She still sees upside on revenues for Yahoo this year, but believes that operating margins might not be sustained near their current (and somewhat extraordinary) 38% level. As evident in the table below, EPS expectations are tightly packed in the 10-11 cent range this quarter, and unlike past quarters, whisper numbers don't extend much beyond these estimates -- nothing higher than 12 cents is being heard for a company that used to routinely beat estimates by 3-5 cents (a string that ended last quarter when it only beat by a penny). Revenue estimates are in the $238-247 mln range, representing a relatively modest 4-8% sequential increase over Q1 and here again the whispers don't go much beyond this range. Unlike past quarters, when the market priced in best-of-all-worlds expectations ahead of Yahoo's report, this quarter sees the market approaching the report with a great degree of caution. Could it be that the tradition of a pre-earnings rally and post-earnings sell-off will be turned on its head this quarter? It's a very real possibility. - Greg Jones, Briefing.com