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To: Bill Harmond who wrote (14250)	10/9/2002 6:22:09 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 57684

what do you think of aol as an investment here? Its being recommended on rukeyser and other shows. From one of the trading threads- 7272 represents a 38% retrace from the 1932 low for the entire bull mkt. wouldn't it be wild if this was a "correction" in a 200 yr bull mkt or something. LOL. Actually the emergence of the nasdaq kinda screws all the really long term technicals though. L

To: Bill Harmond who wrote (14250)	10/10/2002 9:47:16 AM
From: stockman_scott	Respond to of 57684

Yahoo jumps 15% after Q3 By Bambi Francisco, CBS.MarketWatch.com Last Update: 9:37 AM ET Oct. 10, 2002 SUNNYVALE, Calif. (CBS.MW) - Shares of Yahoo jumped 15 percent Thursday morning after the media company said quarterly sales grew 50 percent from a year ago as its online advertising business grew at a surprisingly stronger clip than expected. Additionally, the online media giant raised its outlook for this year. Yahoo (YHOO: news, chart, profile) gained $1.58 to $11.56. Late Wednesday, Yahoo said that it earned $28.9 million, or 5 cents per share, in the third quarter. The result topped analysts' expectations of 4 cents per share. In the year-ago period, Yahoo lost $24 million, or 4 cents per share. Quarterly sales grew to $249 million from $166.1 million last year. Revenue also topped the consensus estimate of $239.2 million and matched the high end of Yahoo's own sales range between $225 million and $250 million. In after-hours trading action, Yahoo traded at $10.50, up 5 percent. The stock also rose by 5 percent in regular trading. "Yahoo's core advertising business was up in the quarter, which is a very important metric for investors," said Jordan Rohan, an analyst at SoundView Technology Group. Yahoo CEO Terry Semel told analysts on the conference call that Yahoo managed to grow its core online advertising business from the second quarter because the company was taking market share away from competitors. Some analysts expected Yahoo's core online ad business to be flat from the prior quarter. Search surprise Of Yahoo's total sales, $147 million came from online advertising, or what Yahoo categorizes as marketing services. That is up 8 percent from the $135.7 million generated in the second quarter, and up 17 percent from $126.1 million generated last year. Much of that growth, however, came from Yahoo's search fees it receives from Overture (OVER: news, chart, profile). Excluding Overture's business, Yahoo CFO Sue Decker said that revenue from marketing services was up sequentially, but down by single-digit percentages from last year due to lower barter deals. Yahoo does not break out the search-engine ad sales that are generated from Overture. But due to Yahoo's strong results, analysts now believe Overture contributed $30-plus million in the quarter. They had projected the partnership to contribute between $21 million and $25 million. By subtracting the $30 million in sales from Overture, analysts estimate that Yahoo generated roughly $115 million to $117 million in its core online ad business. At least one analyst is concerned that Yahoo's cash flow may be too dependent on Overture. "It appears that Overture accounted for about 50 percent of Yahoo's cash flow," noted Jim Preissler, an analyst at Investec. Even though online advertising appears to have stabilized, it's unclear how quickly it can grow from here, Preissler suggested. Other analysts are more optimistic. TWP's Hodge said that while the Overture contribution is benefiting Yahoo tremendously today, Yahoo's core online advertising is "starting to turn." As this business grows, it will "dwarf" the Overture contribution, Hodge said. Looking ahead Yahoo said it expects sales to be between $930 million and $955 million for 2002. In July, Yahoo said it expected to generate revenue between $900 million and $940 million, which was also above the $870 million and $910 million in sales it projected in April. Yahoo also said it expects to generate cash flow of between $190 million and $200 million for the full year 2002. In July, Yahoo said it expected cash flow to fall between $140 million to $165 million, up from a range of $105 million and $130 million for the full year, given in April. Additionally, Yahoo said that revenue from fees and listings grew 124 percent to $83 million. This segment includes revenue from HotJobs and Yahoo's Internet access business in partnership with SBC Communications (SBC: news, chart, profile). Bambi Francisco is Internet editor of CBS.MarketWatch.com, based in San Francisco.