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

To: David A. Stern who wrote (13965)	9/24/1998 8:14:00 PM
From: Jerry Miller	Respond to of 27307

does this all mean that we'll see resistance at 149 ? ...heaven forbid.

To: David A. Stern who wrote (13965)	9/24/1998 10:00:00 PM
From: Oeconomicus	Respond to of 27307

David, interesting, but I'm not sure that "effective CPM" is helpful. Like Bill H. keeps pointing out (as does your post), they are only selling ads on 14% of the page views. That percentage might increase (then again, it might not). The interesting thing is the projected 2003 industry ad revenues of $3.2 billion. Forrester splits it among the "seven sisters", but even if you assume that Yahoo will get 25% of portal ad revenues, that's only $800 million... FIVE YEARS from now. At a 36% operating margin, the top end of Yahoo's target range, that's $288 million pretax or about $175 to $187 million after tax. With 109 million (plus) fully diluted shares, that's $1.72 or less of EPS in 2003 on a $115 stock today. 67 times 2003 earnings? I don't think so. 67 times 1999 earnings, maybe, but that would come to a price of about $31 per share. Bob PS: What would it cost to hire 150 salespeople? With benefits (but ignoring stock options), wouldn't that cost them at least $12 million or so p.a.? Then there's the cost of the stupid TV ad campaign. Money to burn?

To: David A. Stern who wrote (13965)	9/24/1998 10:31:00 PM
From: Dwight E. Karlsen	Read Replies (1) \| Respond to of 27307

At the high water mark in YHOO trading today, the market valued Yahoo Corp. at 11.6 Billion dollars. AMR Corp, parent of American Airlines, the largest airline based in the USA and a worldwide passenger and freight carrier, was valued yesterday at $12 billion. YHOO's corporate street address includes the words "2nd Floor". Something is amiss here, ppl. To top that off, YHOO had a P/S ratio of a mind-numbing 88 at the close yesterday. AMR Corp. P/S ratio yesterday was .59. That's point 59, not 59, of course. Now I know these are extreme examples, but still: This valuation is not going to stand the test of time. I speared a YHOO 120 put today with an Oct expiry, with an $8 limit order. Already up over 50%.