PerfectZero

2 Comments

    • Comparing Valuations of Yahoo vs. Google [view article]
      I appreciate your perspective on YHOO, despite the repeated reference to "synergies." But the dynamic nature of Google's business makes a simple ratio-based valuation impossible.

      While its true that GOOG is expanding its headcount aggressively, its unreasonable to expect those additional employees will begin to add value to the bottom line the day they arrive. So an instantaneous sales/employee examination is pointless.

      Google's expansion has some risks to be sure, but quoting some unquantifiable statistics and magically arriving at $600 is not a valuation.

      May 15 11:23 PM
    • Microsoft's iPod Killer Emerges -- Should Apple be Scared? You Bet! (AAPL, MSFT) [view article]
      Microsoft's pervasiveness may enable it to challenge Apple more seriously than past attempts, but I don't see any way its package could be profitable. Admittedly, media downloads themselves have tiny margins - this isn't only Apple's "secret" - leaving hardware as the only potential profit source.

      But how will a Microsoft player compete with the iPod on pricing? With millions of iPods being shipped per quarter, AAPL has a huge volume advantage that MSFT lacks. If the Microsoft player sells at a loss then what's the point? Its not like the Xbox, where game sales can generate significant revenue.

      My intuition tells me that MSFT will try to package their player with a few extra bells and whistles, but for a higher price than an iPod of comparable capacity. I'm not sure this would work in the long run.       Jul 11 03:11 AM
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