Ya-hooey
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Well, for 2002's second and third quarters Yahoo has managed to make some money: Net income hit $50 million. For the year through Sept. 30 revenue leapt 26% to $667 million. Credit its new focus on fee-based services and listings, aided by acquiring job-listing outfit Hotjobs. Next is a planned acquisition of Web-search concern Inktomi (nasdaq: INKT - news - people ).
Investors desperate for good news have bid up Yahoo shares 122% from the low of $9 in September. They're ignoring Yahoo's entry into territory fiercely guarded by AOL and MSN, which boast 34 million and 8 million subscribers to Yahoo's 2 million. Yahoo doesn't deserve to trade at 80 times 2003's forecasts. Short the stock, cover at $8.