Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : RealNetworks (NASDAQ:RNWK) -- Ignore unavailable to you. Want to Upgrade?

To: volatile1 who wrote (560)	4/8/1998 3:56:00 PM
From: Abenamar	Respond to of 5843

I am a little late on my readings, but I would like to make a point regarding the valuation of this company. How can any one look at the bottom line profitability of RNWK, if R&D alone accounts for 40% of sales and Selling and Marketing Expense for another 60% in 1997. Lets face it, this company is in the right business at the right time and is doing what it should be doing R&D and Marketing, lets worry about profitability later, at this moment profitability is irrelevant in my modest opinion. If you are still concerned about performance, focus on the 80% gross margin and the 134% revenue growth at the end of 97. We are buying potential here, and any new idea backing or questioning the ability of RNWK to maintain or improve its growth pattern should certainly be carefully analyzed. In the mean time I am back in at $33. Good luck to all.