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

To: Mark who wrote (17677)	1/12/1999 4:52:00 PM
From: Thomas Haegin	Respond to of 27307

Mark, quite fully agree with you, but normally margins decrease due to competition, enlarging calculation base, extra overhead for increased business, etc. Having a "brand" name like Yahoo! does help margins, but I would still expect margins to fall over time. So I'd be content if they can jaust maintain them. As you say, they are tremendous! Great quarter, I'll stay long, Thomas

To: Mark who wrote (17677)	1/12/1999 4:52:00 PM
From: John Carpenter	Respond to of 27307

Yes, the valuation is so high because margins should increase. It's a cash generating machine indeed. They're getting more and more advertising revenue while most of their costs are relatively fixed. Whether this company is worth 400 times forward earnings- probably not. I'd pay 200 times forward earnings though. But it's not what I think. The market is willing to pay 400 times the highest forward estimate.