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

To: Roger Smith who wrote (10223)	4/17/1998 9:50:00 AM
From: Candle stick	Respond to of 27307

>Should You Take the Risk? >URL: zdnet.com >How-To >Larry Barrett<BR>ZD Inter@ctive Investor >Thursday, April 16, 1998 > >Everyone knows Internet stocks are growing at a fantastic >pace, but is it safe to buy into the madness today? > >There is no simple answer, but a quick glance at the recent >performance of one stock -- Yahoo! Inc. -- may help you >make up your mind. At the end of the day, it boils down >to faith. And whether or not you like living dangerously. > >Consider that Yahoo! is trading at $120 per share. Double >what it went for just three months ago. And six times >its $20 per share rate of a year ago. Heady stuff. And >the more you study the hard numbers, the less it seems >to make sense. > >Consider that Yahoo!'s market capitalization is more than >$5.1 billion. That is a staggering figure for a company >that made $4.2 million, or $0.08 per share, on total sales >of $30.2 million in its first quarter. > >For perspective, look at 3Com Corp. (COMS). The company's >market capitalization is $11 billion -- which is a relatively >modest figure considering the networking firm has earned >$540 million of net income on sales of more than $10.1 >billion in the past two years. > >In other words, according to Wall Street, Yahoo! is worth >about half of what 3Com is worth, even though 3Com's business >has greater scale and profit performance. Even the experts >are agog. > >"Yahoo's! stock price is trading like nothing I've ever >seen before," said Derek Brown, an analyst at Volpe Brown >Whelan & Co. "It's trading like a very mature company >that established its market dominance long ago. It really >is unbelievable." > >Ponder that: > >Analysts typically look for high-growth technology stocks >trading at about 25- to 30-times earnings in the past >year. When a stock gets to a P/E ratio of 40 or more, >they typically stop recommending the stock. > >But Yahoo! is currently trading at 40-times its total >sales for the past year. Which means that even if Yahoo! >were to double its earnings every year for the next 10 >years, it still would be trading at a price-to-earnings >ratio of 166. > >Wall Street is more than willing to follow this cash cow >around the block. At least as long as the company keeps >producing good quarters. But one major stumble -- even >temporary -- could land Yahoo! in the slaughterhouse. > >"People obviously believe in it , but there's >no track record to determine if it makes sense or not," >Brown said. "But if Yahoo! were to miss in its next quarter, >I wouldn't be surprised to see all these stocks lose 50 >percent or more of their value in a week." > >Internet stocks can be risky business. Even the experts >don't know how risky. Just make sure you can stand the >risk if you want to try to cash in.

To: Roger Smith who wrote (10223)	4/17/1998 10:36:00 AM
From: PeterGx	Read Replies (2) \| Respond to of 27307

<<It seems to me that only some bad news can make YHOO correct>> Only a horrible earnings surprise. It has sailed through almost all else.. YHOO is often compared to IOMG NSCP SPYG etc etc Wasn't it bad earnings SURPRISE that brought those down? If the first Q is historically the worst for earnings YHOO has the year just about wrapped up. Next Q will be great, 4Q can't be bad...maybe 3Q will bring some relief (but IMHO that's unlikely) Onto $150 (brrrr..)