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

To: Bill Harmond who wrote (10718)	5/4/1998 11:43:00 PM
From: Oeconomicus	Read Replies (2) \| Respond to of 27307

Bill, just wanted to say hi. Oh, while I'm here, do you really think that the AOL CFO so publicly throwing out lawsuit bait and claiming that a subscriber is worth $1,500 in any way justifies valuing YHOO at $1,100 per "member"? Or, are you justifying AOL based on YHOO? I'd like to think that you real intent was to point out the absurdity of both, but that would imply some doubts on your part about YHOO's valuation (or even an admission that valuations matter) and that would be simply too much of a shock for me to handle. Anyway, welcome back from your hiatus. Bob PS: I am amazed that a CFO of a public technology company would climb so far out on a limb. I'd hate to be AOL's D&O carrier.

To: Bill Harmond who wrote (10718)	5/4/1998 11:49:00 PM
From: Mark Myword	Read Replies (1) \| Respond to of 27307

>>Yahoo is valued at nearly $1,100 per user...<< WH - I'm not exactly sure how you're defining "user" , as there are no hard and fast numbers on how many separate individuals are accessing the site - at least that I know of - only data on "hits" that is then somehow converted to an estimated number of people , based on your choice of assumptions. In any event , the current market price of Yahoo is based on mania, dreams , and hype , and not on a realistic analysis of what a website will actually yield in dollars of profit. In today's trading environment , we have a feeding frenzy for certain issues , based on the promise of bigger things tomorrow. The small revenues that Yahoo and a few others are booking is being blown out of proportion into wild valuations. And when you consider that a lot of the revenue for say, Yahoo , is coming from money-losing entities like , say , Amazon and others , what do you have , on a net basis (no pun intended) ? Amazon's losses become part of Yahoo's revenues , and after Yahoo's costs are deducted , yield a small profit for Yahoo. The viability of this business model , long term , is highly questionable. Yet , the market turns a blind eye toward the negatives, and keeps plowing money into the concept. Amazing.