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Why do you think Yahoo's stock has bottomed out? Forward P/E is still pretty stratospheric in this market, and you're buying after the Dow has gone up by almos
by comatose_kid 18y ago
Why do you think Yahoo's stock has bottomed out? Forward P/E is still pretty stratospheric in this market, and you're buying after the Dow has gone up by almost 900 points in a single day.
- markessien 18y agoBecause Yahoo is a huge company owning the most popular websites on the planet, and the current price is at it's current level because of a slew of bad news and negative press. Everyone is looking at Yahoo stock and waiting for the right moment to start buying. When it starts, it will be a gold rush all the way back to 20, when it will stabilize and hang on for a bit. In any case, Yahoo is going to get a few more takeover bids or hostile takeovers or so on, and those will drive the price back up. Yahoo is at it's price because of negative news. Not because of a fundamental difference in the company. And the old price was not inflated because of good news either. So it's fair to say that the price will recover at some point. It may take a while, but it's a pretty safe investment. I mean, you think the company growing at the largest rate in the developing world is going to have a permanently depressed stock price for the next 2 years?
- comatose_kid 18y agoHow do you figure it is growing at the largest rate? And what do you mean by growing? User base, revenues, profits?