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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: Jan Garrity Allen who wrote (12481)	11/23/1998 2:40:00 AM
From: ed	Respond to of 74651

Yes , if you look at the absolute value, Yahoo is expensive, but , if you look at the reward , i.e its market share, it is not expensive at all. By buying Yahoo, it will help MSFT get into the E-Commerce business right away in big time, and MSFT can afford the price.

To: Jan Garrity Allen who wrote (12481)	11/23/1998 2:54:00 AM
From: ed	Respond to of 74651

Yahoo is too expensive if you take its earning into considertion. The value of Yahoo is built on its future potential to make more money. However, after the merge of AOL + NACP + SUN, Yahoo's future potential of making more money is uncertain, from this point of view, Yahoo is well over priced after Monday's announcement. And what is worse is Yahoo can't compete alone , or even survive. So, after Monday's announcement, the stock price of Yahoo will start to drop slowly, and back to the fundamentals. Yahoo have to sell, or it will just disappear slowly from the market by itself. So, Microsof will buy Yahoo , of course not with Last Friday's closed price. Microsoft can use SEEK as a bargin chip to acquire Yahoo. For Yahoo, it is a matter of die or survive. For Microsoft, it can still compete in the e-commerce market without Yahoo, just a matter of a little bit more of time.