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Technology Stocks : InfoSpace (INSP): Where GNET went! -- Ignore unavailable to you. Want to Upgrade?

To: tahoe_bound who wrote (25602)	3/11/2001 3:47:28 PM
From: Rational	Read Replies (1) \| Respond to of 28311

Your points are germane, tahoe_bound! Paul Allen must have seen the true picture by now. I continue to feel amazed about Yahoo!, lately. Its revenue in Q4 was $310 million, while it expects to generate $180 mil in Q1. This is a very steep decline. Yahoo! needs revenues of $900 mil per year to break-even, but can generate only $750 million (not even that if the Q4-Q1 rate of decline continues). This means Yahoo! will be losing this year at least $150 million. It thus portends the demise of the internet advertising model. Yahoo! cannot easily sell information; any attempt to do so will undermine its source of advertisement revenues. InfoSpace, on the other hand, is based on selling of real-time information. The market seems to be confused about InfoSpace (as its relatively deep undervaluation indicates) due, perhaps, to doubts that ex-insiders have disposed off their holdings. A deeply bearish market does not seem to have the patience to question the credibility of the sell off by insiders that struggled very hard, but failed, to be at the helm of the company.