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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Smart Investor who wrote (78621)	11/12/1998 12:13:00 PM
From: Ken Beal	Respond to of 176387

Subject: Internet stock mania? Hi Smart, Re: blind to the mania of internet stocks. But is it really "mania"? I suppose when other people are acting in a way that appears irrational, people tend to slap a label from psych on them. (This is not directed at you, merely at the analysts who keep saying "Internet stocks are overvalued.") But let's look at it a different way. Yahoo's product is web pages. Web pages are fairly inexpensive to produce (compared to, say, a computer). So Yahoo's overhead, other things being equal (which, I agree, they're not), will be a smaller percentage than Dell's and therefore Yahoo will experience greater earnings growth. I have no money in Yahoo right now; it moves too quickly for me to take a chance, and besides I'm waiting for Dell's earnings. So if we're really concerned about analyzing the market, and understanding the role of technology in helping businesses do more with less, then we'll see that a business which can earn money by moving less physical items will always win out over a business that moves physical items (again, other things being equal). Again, this is not comparing Dell's worth against Yahoo's -- merely, Internet companies vs. companies that do business the old-fashioned way. Thoughts? KenB PS And "moving less physical items" is definitely a goal of Dell's -- they reduce the number of times a human must touch the machine to an absolute minimum, as we all know humans are fairly unreliable machines.