10 Quotes by Holly Becker

We believe Yahoo! will remain volatile until it can prove that its online ad model can evolve in this new, more difficult environment.

Yahoo! is embarking on a major transformation. The company must now prove that online advertising is cost effective and integral to the marketing mix of traditional advertisers.

Furthermore, eBay -- which has held up relatively well versus other leading Internet companies -- has little valuation support.

We continue to believe Amazon's valuation remains ahead of the size of its opportunity.

While only 10 percent are considered 'financially troubled,' virtually every Internet company we have come across is tightening its belt. Clearly, the company has a lot of work in front of it.

While they have made impressive progress, we believe that the sales cycle can be as long as two years given the inertia inherent in many large marketing organizations.

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.

Even after a 90 percent decline, we still think the stock is expensive, trading at 91 times 2001 earnings per share and 45 times earnings before interest, taxes, depreciation and amortization.

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.