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

To: craig crawford who wrote (9047)	4/2/1998 11:16:00 PM
From: Oeconomicus	Read Replies (2) \| Respond to of 27307

With thanks to Glenn Rudolph on the AMZN thread: Internet Stocks Surge, Sending Yahoo! Above $100 Threshold By NICK WINGFIELD THE WALL STREET JOURNAL INTERACTIVE EDITION ...And it appears Wall Street needs little more than a press release touting a series of deals to pour money into a stock. That apparently came Wednesday, when Lycos announced that it had closed commerce deals with on-line merchants worth $30 million... But Ms. Williams said a number of those deals were already factored into her financial projections for Lycos's quarter. "Just based on valuation reasons, we think the stock has gotten ahead of itself," Ms. Williams said. Still, Ms. Williams continues to recommend Lycos's stock to investors. That's because she believes that there's the potential for still more good news from the company to lift the stock... But the run-up in shares of Yahoo, which generates revenue from advertising and commerce, may reflect optimism about its first quarter, results for which will be released next week. Paul Noglows, an analyst at Hambrecht & Quist LLC, predicts the company will post a five-cents-a-share profit on $26.5 million in revenue, compared with a two-cent loss, adjusted for a stock split and an acquisition, on $9.5 million in revenue in the year-ago quarter. "You typically see this type of anticipation in front of a quarter," said Mr. Noglows. "I expect them to meet or beat" expectations. OK, Ms. Williams says she already figured on the deals that drove the price of Lycos up today, but still recommends it because more news may come out that drives it even higher. Buy and hope? Or is this a variation on the "all the bad news has already been discounted" argument? Let's see, we knew about the deals already and bought the stock, so now that it's gone up in response to those deals as we expected, there must be some other good news about to come out. Otherwise, it wouldn't have gone up so much, right?. But, of course, when that news does come out, it will go up more and we will profit because we anticipated it. Huh? Mr. Noglows (who was on CNBC this afternoon evading valuation questions), OTOH, sets ridiculously low revenue targets that he knows should be easy to beat, but could not possibly produce 5 cents in profits if expenses are anywhere near what the company says they are. I guess he figures he can dismiss missing the EPS number if/when they blow out the revenue number by saying they are just buying market share "in the great Internet land grab." $26.5 million? They did $25.1 million last quarter. Is he an idiot or does he just assume that everyone else is one? Bob