Dueling Fools Two Do Yahoo!
Yahoo! Price (1/23/01): $38.94

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Dueling Fools

January 24, 2001

Did you Yahoo! (Nasdaq: YHOO)? The stock has been rattled quite a bit over the past year, but it remains the online destination of choice. Will it bounce back? Have we yet to see the worst?

Not all Fools agree. This week Mike Trigg (TMF Tonto) and Mike Renshaw (TMF Rimpy) are Dueling Fools. Tonto likes the company here, while Rimpy still thinks the stock is overvalued. Which Mike will stand on the mike stand? Read on and then vote for your favorite.

Bull Argument...
I doubt there's a better time to debate the future of Yahoo! (Nasdaq: YHOO), the world's most recognized Web portal. Given the state of online advertising and Yahoo!'s dependence on that market, being bearish on the company these days is as trendy as Britney Spears, Christina Aguilera, and the Boy Bands put together. Still, I don't envy the bear this week: We're dealing with a company that has a dominant brand, a scaleable and efficient business model, and can generate gobs of cash.
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Bear Argument...
If I think Yahoo! is such a great company, then why wouldn't I like the stock? I don't like it for a simple reason: Its price is too high relative to its future earning potential. As many investors have recently learned in a painful fashion, even the best companies can be too expensive.
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Bull Argument »