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

To: Brooks Jackson who wrote (8587)	3/19/1998 12:52:00 PM
From: LoLoLoLita	Respond to of 27307

Brooks, what you're missing is that there are no absolutes in a market top, only RELATIVE values. XCIT is cheaper than YHOO. but maybe YHOO is worth the premium because it's later in the alphabet (or some other unknown reason). hell if i know. give a look at AOL. is AOL worth $1000 per subscriber? i think surely not. but the market thinks so. for now at least. or AMZN. that one takes the cake! are they worth $720 for each book that they say they can sell you? (2.5 M books and a $1.8 B market cap.) many of them at 30% off list price no less!!! David

To: Brooks Jackson who wrote (8587)	3/19/1998 1:09:00 PM
From: Oeconomicus	Read Replies (2) \| Respond to of 27307

Of course, WH will vehemently disagree, but I don't think you are missing a thing if you find Harmon's reasoning -well- unreasoned. He does raise a relative valuation issue though. Ignoring the fact that he is understating Yahoo's market value, he shows them at more than twice the average per user value of the group. He also shows Yahoo at almost five times his own estimate of what a "user" (as opposed to a direct revenue producing "customer") should be worth. But, how he could reason that a paying "customer", buying CDs being the example he gives, is worth ten times revenue in any business is beyond my non-visionary mind. If I buy $200 worth of CDs or books a year, I am worth $2000 to shareholders even though my purchases probably contribute $10 or $15 to the bottom line? 133-200 times earnings? I think not. But then, he's the one who gets paid to come up with this "content". Bob