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

To: Moominoid who wrote (14592)	10/10/1998 12:46:00 PM
From: dwlima	Read Replies (4) \| Respond to of 27307

i think the high beta of 2.06 is a reasonable estimate. however, i would like to know your earnings growth rate estimate. i think what people fail to recognize is that the internet is in its infancy. i agree that in 10-15 years it will be a mature industry like that of TV and radio, but with computer prices now hitting $500- this will fuel much more growth in internet traffic. if one was to assume that the internet scene will evolve like that of television...we would be faced a few majors and everyone else. just like we have NBC, ABC and CBS in the states and millions of others in each state....it is possible to fathom a world where yhoo and a couple others are the primary interfaces between man and the internet world. just yesterday a company took its $10M and divided it between AOL and YHOO as it believes in order to obtain a competitive advantage on the net- one must advertise on the two main traveled web sites. at your price of $10 and a PE of 40, YHOO would need to earn .25 per share or approx. $25M. their last net income for 3 months was $16M or so. so, what gives? also, if you use a DCF analysis and assume a 200-300% growth rate for a few more years and then a 100% growth rate for a few more and then a 30% growth rate for a few more and then a 4% growth rate in its terminal year....you would arrive at a $20,000 to $30,000 per share. in summary, i see more upside than down. i see huge growth potential and you do not. well, time will tell...but each day's stock price movements will not.