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Technology Stocks : Altaba Inc. (formerly Yahoo) -- Ignore unavailable to you. Want to Upgrade?

To: blankmind who wrote (26070)	11/29/2000 3:14:19 AM
From: Jojo Mosko	Read Replies (2) \| Respond to of 27307

Hi All, There's a new Forbes issue out with Tim Koogle and Yahoo! on the cover. It is in many ways very positive about Yahoo! The "big plan" of taking over the 200B/year advertising market (considering that currently Yahoo! is only a 1 billion dollar company, there's essentially _infinite_ space to grow into). How Yahoo! has rejected a very profitable deal with Disney thinking it will be giving too much "exclusivity" back. How in a world of rapidly falling online advertising prices, Yahoo! can still demand -- and get(!) -- a 10x or so above market (CPM) prices because of its much better targeting and huge audience. On the other hand the article is cautious citing that Yahoo!'s market cap is still bigger than the combined value of the top 200 magazines in the U.S. (yet still about 7 times lower than AOL/TWX) What the article fails to discuss though is the stellar quality of Yahoo!'s financials compared to all traditional media companies. For example: 1) The net income growth of 328% year over year based on last quarter (11.1M to 47.6M) 2) The 1.6 billion dollars in cash which are growing very rapidly (by almost 50% in the past 6 months). 3) The incredibly high gross margin (~86%) 4) The complete (zero, zilch, nada!) lack of debt 5) The cash flow ratio that is second to none. See the Motley Fool "Rule Maker" articles for details. In short, while the article is well done from the "big story" point of view, it misses completely on the simple and hard financials of the company, focusing instead only on the valuation. While other financial magazines have a tendency to cause the Jinx effect (highlighting a company at its high) Forbes may have done a nice contrarian job here... Investor sentiment against Yahoo! is extremely strong. Short interest is about 3 times daily volume. Analysts are downgrading left and right (they were all bullish when this stock was at $200 ...) it is difficult to say when it hits bottom. However if I may issue just two predictions: On January Yahoo! is likely to deliver outstanding numbers once again despite all the naysayers, and will keep doing so for the forseeable future _despite_ slowdowns in almost any other sector in this economy (I should know since I'm personally spending more and more time on Yahoo! and doing all my shopping on their excellent Yahoo! shopping site.) This, and ten years from now it'll be one of the most valuable companies on the market. Time will tell. Good luck to all.