Since it started trading in 1996, Yahoo's stock has shot into the stratosphere along with many other Internet stocks. It returned over 500% in both 1997 and 1998, and more than 200% in 1999. Such performance is certainly impressive, but will be hard to maintain. Speculative growth stocks in general, and Internet stocks in particular, are fragile. They can crumble on a whisper of bad news and rally on an encouraging rumor, so be prepared for plenty of volatility. There's not much you can do about that; to get those highs, you have to risk the lows.
Is it Fairly Valued? >>