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Technology Stocks : Altaba Inc. (formerly Yahoo) -- Ignore unavailable to you. Want to Upgrade?

To: Smart Investor who wrote (16417)	12/28/1998 6:52:00 PM
From: Randy Ellingson	Read Replies (1) \| Respond to of 27307

I think Yahoo is really still in their early stages regarding the old 'growing their business' business. I am not prepared to offer even a simple explanation. I wouldn't be surprised if their margins are decreasing already -- that wouldn't worry me. It would worry me to see significantly slower revenue growth, or a significant decrease in expansion-related expenditures. Yahoo will for several to many years be figuring out the best and new ways to leverage their user base to make money. And I think they are doing a good job of that right now. We know they differ substantially from AOL in at least a couple ways -- they don't have a subscriber base sending them monthly payments, and they are a significantly younger company. When they do begin to turn real profits, and when they are where AOL will be in a couple more years, then the volatility will slow and valuation will be a bit more transparent. In short, I don't think anyone can justify YHOO's stock price on near term earnings expectations. Longer term, that's a different (and difficult) question. Look at CNWK: they have no profits and yet are valued at ~$1B. Randy