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

To: Rational who wrote (3041)	11/20/1997 8:53:00 PM
From: Bill Wexler	Respond to of 27307

I would guess that Yahoo will not charge a fee in the near future. At this point, I think it would be suicidal for the company. The whole model is based on the hope that their content will attract enough eyes so they can attract more advertisers with more lucrative campaigns. There has been a lot of hype calling Yahoo a "new media" company. Nothing could be further from the truth. Next "earnings" report is in January. So far, it doesn't look good (October sales have shown little change over September, and Yahoo did a very foolish acqusition of four11 for $90 mil. in stock. Expect another net loss.) By the way. William Harmond - who is a bull on the stock - noted several instances of growth companies which went up many x in price, sometimes before showing earnings. Interesting to note that at Yahoo's current market cap: You can buy 65% of Iomega. You can buy 35% of AOL. You can buy 100% of Intuit...with over a billion left over. As I mentioned earlier...you can buy 2 Rambuses. I could go on and on... Take a look at the long-term charts of these companies. They are all great growth stories, but they all took years to pan out. Prescient investors in Yahoo; however, really believe that they can earn a good return on their cash long term by buying at these levels. Yahoo is a 2 year old company that sells web advertising. It has about $50 million in TTM sales and it is losing money. If it weren't for the fact that the IPO cash was earning interest, the bottom line would look a lot worse. There is zero doubt in my mind that the price will decline severely from these levels. Only a matter of time.