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Technology Stocks : AUTOHOME, Inc -- Ignore unavailable to you. Want to Upgrade?

To: Michaelth1 who wrote (23854)	7/25/2000 9:39:06 AM
From: M. Frank Greiffenstein	Respond to of 29970

AOL was no where near where ATHM currently is--but its market cap was also no where near ATHM's Can't argue with that! It is sobering to realize that despite ATHM's huge price decline, it still sits at 14 times sales. Each subscriber is valued at $3,700 (at AOL, its like 5,700 currently). All I can say is that valuation metrics have changed from the 1980s. I might be able to argue that AOL's valuation became "overvalued" starting in the early 90's, and it never looked back, even during its (few) darkest days. I feel that ATHM is no different then TV networks in the early 50s. They too were obscenely valued and much more leveraged than ATHM is today. Again, I think that ATHM will succeed in spite of itself. Roadrunner subscriber growth has slowed to a crawl, and venture capital has become more conservative, I doubt that money could be raised for a competitor. Its ATHM v. DSL. And both will be winners. DocStone