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: Smart Investor who wrote (16082)	12/18/1998 4:12:00 PM
From: Nelson Chang	Read Replies (2) \| Respond to of 27307

SmartInvestor, <<<If AMZN is worth less than $50 per share, I guess YHOO's worth is less than $20 per share. After all, AMZN is actually selling something and has decent revenue. On the otehr hand, YHOO's revenue is so small, it is not even worth to talk about. It would have been even smaller if not for Softbank pumping money into it.>>> Are you agreeing w/ this? I can't figure your stance. Anyways, you clearly wrong here. I'm not going to argue where AMZN or YHOO is the bigger name brand of company, but AMZN has tiny margins and YHOO has over 30% gross margins and increasing. YHOO has one of the soundest business models to achieve such gross margins where most other internet stocks will be losing money for the next couple of years. YHOO is expected (i'm not even going to look the numbers up because they're so obvious) to earn $2.00 per share by the year 2000 or so. YHOO's revenue momentum is increasing exponentially as is the growth of the internet. Wall street knows it cannot stand in its way, and it isn't. $20 for YHOO, that would give it a forward PE of 10. I don't even lose sleep buying YHOO at a forward PE of 100. Best of all, YHOO still has little competition. XCIT LCOS AMZN MSFT AOL - they are doing very little to stop YHOO's momentum. That either tells you something about YHOO, or the growth of the internet that it is able to support so many players. One question - are you on the juice or something?