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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: FAISAL JILANI who wrote (20515)	4/14/1999 12:01:00 PM
From: Just_Observing	Read Replies (1) \| Respond to of 74651

You are underestimating the revenue of Expedia Expedia grew from 10 million to 60 million in 13 weeks. That works out to be a weekly growth rate of 3.7%. When you repeat this calculation for a year, the revenue of Expedia works out to be 1.517 billion for the year. Your estimate of 832 million does not take into account this compounding effect. Even if Expedia's growth rate were to fall to 2% a week after 6 months, the revenues will come out to be 1.27 billion. So even a conservative estimate of Expedia's revenue for the year will have to be 1.27 billion while the expectation can be high as 1.517 billion. What would be a market cap of an internet stock which was garnering 1.5 billion dollars in revenue? What would be its cap if it had synergies with other sites? I think the street is missing the picture. What do you think ?