SI
SI
discoversearch

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: UCLAlumnus who wrote (14694)10/12/1998 7:41:00 PM
From: dwlima  Read Replies (3) | Respond to of 27307
 
does anyone know how MSFT gross margin compares to that of YHOO? how about market valuation and recent growth trends?

funny that you ask- MSFT has a market cap of $250 billion or 25 times that of YHOO. gross margins are similar. revenues of MSFT are 15 billion and yhoo will be 200 million based on last quarters performance...thus MSFT has revenues of 75 times that of YHOO. hummm, if YHOO was to grow in step with MSFT and that both should have the same sales to price ratio, that would mean that YHOO would be roughly worth $40 per share.

the question is "Will YHOO grow in step with MSFT". MSFT does not double or triple its revenues from period to period, but can YHOO. well, if it continues to do so for a few years we will see a 250 billion YHOO and a 700 billion dollar MSFT...and when that happens, YHOO stock price will be worth 25 times what it is now or $3000 per share- which is my prediction in 3 years. give it 7-10 years and we will see the 20,000 to 30,000 share price...unless some group of companies can de-throne the king