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

To: yuedong wu who wrote (6462)	1/14/1998 7:31:00 PM
From: peter grossman	Respond to of 27307

Peter F pointed out that $25M is 45% sequential growth, apparently supporting the hyper growth, super high valuation theory. But does it? How much Four11 revenue was bought with $80 M of inflated stock + a $3.8M one time charge? Until we know where the revenue came from, we can draw no comparisons, no conclusions. If $4M was Four11, then the real growth is "only" about 20% quarter to quarter, well below a growth rate justified by this valuation. OTOH, continued Q to Q growth of 45% for one year would result in next year revenues of about $ 250M to $300 M next year, and liberally allowing a net margin of 15%, the p/e would be 65, quite reasonable considering the would be growth.Even if net margin were 7.5%, the growth rate could be severely cut to 100% for the next year and that year's forward p/e would again be 65. The point is, what's the real growth. Is Yahoo's business plan is to buy sales with tulip stock. Does anybody out there know where the revenues came from? I think this information would be more valuable than one chap blythly saying the stock's going down 10 in the next ten minutes and one lady slyly saying its going to 100.