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

To: Hiram Walker who wrote (11200)	6/18/1998 11:19:00 PM
From: Mark Myword	Read Replies (1) \| Respond to of 27307

>>William, where is the bottom for YHOO? Where do the fundamentals justify the price? I know on the upside it doesn't matter,but at what price would someone buy some shares? << I don't pretend to have all the answers, but I will say that any valuation beyond three times projected revenues is rich. And that, mind you, is for companies that in some cases have never made a dime in profits. Look at Amazon - if they don't issue more stock soon , or have large option exercises, their equity will be negative. They are a cash-burner at the moment. Profits a long way off. Yahoo has made a small profit, but today announces a $45MM writeoff ; what is this, an acquisition blunder? How can you pay $49MM and then turn around and write off 90% ! And the future is so uncertain, as to competition, technology, regulation, public tastes, the economy, that it's a pure gamble to buy many of these companies. I don't really think any one website or company will dominate the net, establish a "brand" , or anything of the sort. I see it being very fragmented, with many diverse players taking small pieces, and there being a continuous influx of new entrants. I don't see a way for any entity to become a monopoly, or to establish enough power to command a price for advertising that will yield big profits. Microsoft would have a shot at that , but DOJ is tying them up in knots, most likely to allow the net to flourish without any "gates" to pay for as you pass through. I don't have the current forward revenue projections for YHOO , but take total 1998 estimate , multiply by 3, and that's my number.