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

To: Dave Mansfield who wrote (19285)	1/27/1999 10:04:00 PM
From: HG	Read Replies (1) \| Respond to of 27307

Dave, Is it fair to compare MSFTs growth with that of YHOO and internet as such ? Not only were the industries different, the growth of MSFT (software industry), INTC (hardware industry) etc was linear. It took years for PCs to come of age, and softwares to standardize. But once standardized, MSFT/INTC grew fast. Internet has grown exponentially right from inception. Perhaps companies need to grow exponentially ? I don't know HOW we should compare or WHO we should compare with becoz this industry has no parallel - and of course no one is able to create any meaningful measures. And if one accepts this is the last paradigm of this century, maybe uncertainity about the valuation can be easier to accept.

To: Dave Mansfield who wrote (19285)	1/27/1999 10:32:00 PM
From: gc	Read Replies (1) \| Respond to of 27307

Your data must be inaccurate. msft never traded "in a pe of range 15 -29" A young high growth company would never trade in that pe range. You have to remember that yhoo just turned profitable only a few quarters ago. pe is not quite meaningful tool to gauge its stock price. Rather, you should use its top line growth and GM. It has consistently grown its topline by 400% and earnings by 10 folds. Yhoo's forward pe is only 400 which is about the same range as aol. With a topline growth rate of 400% and much higher earning growth rate, I don't think it is expensive at all. If you compare its revenue growth to aol's (either subscription fees or ad revenue), you will see yhoo has much faster growth rate and yet they have about the same pe.