To: Jenna who wrote (117127 ) 11/21/2000 12:54:50 PM From: 2MAR$ Respond to of 120523 1-Yahoo stock falls to lowest level in two years (adds analyst comment, updates stock price) LOS ANGELES, Nov 21 (Reuters) - Shares of Internet portal Yahoo Inc. <YHOO.O> fell to their lowest level in two years on Tuesday amid concerns over a weaker Internet advertising market, and a day after a French judge ordered the Internet giant to bar French users from Web sites selling Nazi memorabilia. Yahoo shares were down $6, or over 12 percent, at $42-7/8 in early afternoon trading on volume of nearly 12 million shares, after falling as low as $42-7/16. The company last saw its stock slide this low in mid-November 1998. The shares fell after losing 3 percent on Monday, following news of the French court ruling. At the start of this year, Yahoo had risen as high as $250-1/16 in intraday trade. Morgan Stanley Dean Witter analyst Mary Meeker said in a report that Yahoo had a 30 percent chance of missing its revenue targets in coming quarters due to "the difficult Internet advertising market." "Among the Internet leaders, we think Yahoo!, owing to its revenue concentration, is the most at risk to Internet ad spending trends," Meeker said. She noted that Yahoo's efforts to make money from visitors to its site were a step in the right direction, and estimated that each Yahoo user was worth only $21 in revenue to the company annually. Meeker said the company's recent commitment to broadening revenue streams and monetizing its customer base "will be key to Yahoo's long-term success." Under the French court decision, Yahoo must prevent French users from visiting English-language auction sites where Nazi books, weapons, SS badges and uniforms are offered for sale. In other legal news, a Taiwanese Web site threatened to sue Yahoo! China, alleging that the portal used the Taiwan firm's copyrighted material on its mainland Chinese Web site, lawyers representing the Taipei firm said. Yahoo! China, owned by Yahoo, had no immediate comment on the allegation. Analysts noted that the legal issues facing the company were not likely the cause of the stock's weakness. ((--Timna Tanners, Los Angeles newsroom, 213 380-2014)) REUTERS *** end of story ***