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Technology Stocks : InfoSpace (INSP): Where GNET went! -- Ignore unavailable to you. Want to Upgrade?


To: El Matador who wrote (325)10/4/1998 3:36:00 PM
From: Technologyguy  Read Replies (1) | Respond to of 28311
 
OK, using TTM, rather than 4x most recent quarter, YHOO's price to sales ratio is 91. GNET's is 33. GNET is a younger company, with revenues about comparable to YHOO's of Q1 96, so I would argue that using the VC model is more appropriate, but either way, GNET is a better buy (or at least less overvalued).

Your right, YHOO is now profitable, (depending on how much you trust their accounting methods), but its value is not based now on the small profitability, but on its potential for future growth.