Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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: Original Mad Dog who wrote (15589)	11/25/1998 1:48:00 PM
From: Smart Investor	Read Replies (1) \| Respond to of 27307

Hi Mad Dog, Revenue is important. The only reason YHOO is making a small profit is that it purposely reduce its spending as much as possible so it can show a small profit. As you know, for any business it is important to pay attention to initial development and revenue growth, especially for a new business. I can bet that YHOO will be in red in the near future because it is facing more competition and needs to spend more on research & development and marketing. Its charge rate will also decline because of its #2 or #3 status behind AOl/NSCP and Microsoft.com (very soon). Therefore, considering its current low revenue and bleak future prospect, do you think that it is absurd that it is currently commands the highest premium of ANY net stock ? This high premium is also working against the company now because no company want to touch it or buy a part of of it because it is just TOO EXPENSIVE. As for stock split stuff, the current price already discounts that. As soon as AMZN announced its split, people expected YHOO will do the same. Therefore, split will not add any more frenzy to this bubble. On the other hand, the company management may decide not to split and discourage further speculation on its stock. More speculation is bad for the company, and may hasten the demise of the company.