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To: marion (Hijacked) who wrote (15907)	12/5/1998 9:59:00 PM
From: Phillip C. Lee	Respond to of 27307

<<If current internet related revenues are 21 billion , and Yahoo is taking "such a lions share", then how come their revenue last quarter was only around 55 million. Just what is supposed to happen over the next few years that will change that? Where are they supposed to make this revenue from?>> Well, there are lots of goods sales on internet that attribute to the major revenues, however, the margin is not as good as software service. MSFT's revenue has only 1/6 of IBM's, but its market is more than twice as IBM. Software is the king on profit margin. From $21b to $200b, 10 folds increase, will push YHOO proportional increase from $55m to $550m in year 2000. <<Do you wonder why that is? Could it be that Yahoo is more concerned about running their stock price instead of the company? Is Yahoo so afraid of missing the analysts earnings? They made a big chunk of money last quarter from interest income. The cash came from issuing additional stock to Softbank. They opted not to spend that cash, and instead are just using it to earn interest income. They also opted to not spend the money to be included on Netscapes and Microsofts browser even though many of the other search engines are paying to be there. In the meantime, their competition is spending huge sums on television advertising and other forms of marketing. Yahoo has lost market share this year. According to Media Metrix and other rating services, their user base is actually declining.>> Judging from YHOO CEO's words, their user base has been increasing. It depends on where you obtain the info regarding market share. Each company has its own strategic plan, hence I have no comment on how they run YHOO. As long as it's healthy and has potential to grow continuously, then all shareholders will be happy. Phil