Is Yahoo Overpriced?

Yet Another Highly Overpriced Offering ...

[gopi]

[money.cnn.com...]

Yahoo stock hit a new 52-week high on Monday and shares are up 116 percent this year. Yahoo! is trading at nearly 100 times 2003 earnings estimates.

[Chris_R]

SINA is another overpriced syrocketing portal:

[moneycentral.msn.com...]

What happened to the Internet bust? Don't people remember? I guess not. I probably shouldn't talk - as I own some amazon shares....

eBay - which is probably the "best" pur internet company from a profit and margin perspective is trading at 119 times earnings.

"Analysts are predicting earnings of 8 cents a share, 167 percent growth from a year ago. Forecasts call for 40 percent sales growth."

This should be a huge wakeup call - earnings growth not produced by accelerating sales are not sustainable. However, 40% sales growth is nothing to sneeze at.

Earnings come out after the bell. Seems like all the earnings recently are beating expectations (seems to me that means these people don't know what they are doing).

[dragonlady7]

As far as the opinion of an admitted mostly-ignorant casual watcher goes, I think what's happening is that while the Internet boom was far, far too high, when it went bust it busted far below what was warranted as well. The companies that survived did so because they did have actual merit, while those that drove the boom too high did not. People are noticing this and are diving into those companies that did have actual merit-- but they seem to be getting a little too enthusiastic again, because everything else is so unstable, uncertain, and generally awful. I only hope they don't drive things artificially high again only to end up in an even deeper bust that takes out even more actual, viable companies. Last thing we need...
What I want to know is if the stock market is ever properly balanced? Or is that just not the way it works...

[Chris_R]

What I want to know is if the stock market is ever properly balanced?

Depends what you mean by balanced - some would argue the market is always at where it should be. If someone really wants to explore this - I highly recommend this book:

[amazon.com...]

A Random Walk Down Wall Street

If you have some more cash - you can buy lunch with the oracle:

[cgi.ebay.com...]

Current bid for lunch with Warren Buffett is $20,800

[dragonlady7]

>Current bid for lunch with Warren Buffett is $20,800

Argh! After taxes, I'll be lucky if I bring that much home this year!

Jeez, man, it just ain't fair.

They'll put anything on eBay... is Warren Buffet really playing along with this?

[Allergic]

Another view here :
[stocks.internetnews.com...]

[gopi]

Yahoo stock fell 7 percent today! .I should have shorted it yesterday :)

[money.cnn.com...]