Holly Becker Growth Quotations

The tone of the conference call was quite cautious. Coupled with a revised outlook on sales and marketing expenditures, it suggests that a re-acceleration of revenue growth will only come at the cost of earnings.

Even after the recent decline, the stock appears rich at 36 times 2001 revenue and 150 times earnings. We remain cautious on Yahoo! shares in front of several potentially low single-digit growth quarters.