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Strategies & Market Trends : The New Economy and its Winners -- Ignore unavailable to you. Want to Upgrade?

To: Bill Harmond who wrote (16704)	4/22/2003 5:50:42 PM
From: Lizzie Tudor	Respond to of 57684

everything way up ah it looks like pretty much everybody surpassed estimates (which were really low across the board except for ebay) it looks like, even ask jeeves and misc software Irony of the day....(check out the bold at the bottom) The information GAAP SAN FRANCISCO (CBS.MW) -- When Internet companies are showcasing $10 billion-plus market caps, or nearly $30 billion in the case of EBay, trading on fictional numbers is foolhardy. As for me, I think it's time to get beyond this "pro forma" nonsense. And at EBay's quarterly call after results, I suggest that EBay advise analysts to shift their attention away from "pro forma" earnings. (This suggestion is most certainly directed to Amazon.com as well). Another article that internet stocks are overvalued... blah blah blah Based on the Deutsche report, as well as earnings collected by Thomson First Call earnings estimates, Yahoo (YHOO: news, chart, profile) looks less expensive than Amazon.com and comparable to EBay. Yet comparing these multiples is like comparing apples and oranges. That's because Yahoo's earnings on First Call are closest to following GAAP among the Internet companies, since they reflect taxes and other charges, but exclude options expenses. If EBay and Amazon were to report in a similar fashion, Amazon.com would actually be twice as expensive as Yahoo, and EBay would also be more expensive than Yahoo. By using Yahoo's earnings calculations as the standard, and using Monday's share prices, Yahoo would trade at 71 times earnings, EBay would trade at 76 times, Amazon would trade at 132. Check out my interview with Bill Day, co-founder of About, a division of Primedia. You'll have to sign up for Yahoo Platinum if you want to see it. Click here. marketwatch.com