CURRENT PRICE

$175 (Target $225)  

EARNINGS

                1998                                                        1999                                                        2000                       

EPS        $0.05                                                       $0.44                                                       $0.68

CHANGE                                                               483.3%                                                   60%

Q4          $0.04                                                       $0.15

                  · Yahoo is one of the first internet portals to realize a profit

                · exponential earnings growth in the following quarters

                · Increase in international expansion is a reason for earnings growth

                · Merril Lynch gives Yahoo a high risk rating but recommends a long and short term position.

COMPETITIORS

                 · Excite @ Home, Ebay, Lycos, Go2Networks, Amazon

                ·

MARKETING STRATEGY  

                · Create an internet conglomerate of services.

                                · Search Engine

                                · Web Pages (Geocities)

                                · Email & Greeting Cards

                                · Audio & Video (Broadcast.com)

                                · Auctions

                                · Connections to wireless devices (Cellular phones)

STRENGTHS

                · International domination especially in Europe, Japan and Australia.

                · Yahoo! offers several services and is constantly acquiring other firms in order to stay ahead of         others.

                · No debt and 800 Million in cash

                · Significant rises in the number of unique users and advertising revenue.

WEAKNESSES

                · Highly volatile

                · Increasing competition

                · Highly sensitive to earning surprises

OPINION

                · Yahoo! is a great long term investment if you are able to bear the risk.  It has incredible earnings potential and has become and will increase their reputation of being the dominant power in the internet sector.  However, in 6 months, it is hard to determine if the internet sector will be on a high or a low swing.  If we have to close out on a low swing, we could take a hit.