To: OtherChap who wrote (7048 ) 2/1/1998 2:46:00 PM From: LRS Read Replies (2) | Respond to
That article was so full of it! How many times have we seen bull (I mean, um, bear) like that and the stock keeps going up?But its price-to-earnings ratio hardly indicates value. It is now selling for about 180 times estimated 1998 earnings and 90 times very optimistic estimates for 1999 earnings. (As a reality check, Microsoft, hardly a cheap stock, is selling at 41 times its more predictable 1999 earnings.) What's more, since the company doesn't have to pay for paper or other distribution costs, as print publications do, its audience can rise with very little additional expense. As a result, Benjamin estimates that in 2000, Yahoo will take in $327 million in revenue, producing $144 million of profit. Benjamin predicts that the stock will rise to $80 by year-end. "In the long run, we'll all find the five or six Web sites we regularly visit," said Brian C. Oakes of Lehman Brothers, one of the minority of analysts who rate Yahoo a hold. "And we won't need to search as much." America Online, which dominates the home market and serves as a competing guide to the Internet, is pressing into offices, where Yahoo is ahead. Microsoft, as you may remember, caused a little trouble for that other hot Internet company, Netscape Communications.
