Looking to calm investors panicking over the train wreck at Yahoo!, AOL Time Warner COO Bob Pittman reiterated the company's financial guidance for 2001.
Speaking at a Merril Lynch Internet investor conference, Pittman said that AOL still expects 2001 revenues of more than $40 billion and cash flow around $11 billion. Investors chiseled 15% out of Yahoo! shares Thursday on news that its revenues will only total $170 million in the first quarter, not $230 million as predicted in January and $320 million forecast in December.
Some major investment banks have actually issued "sell" recommendations, something that's almost unheard of on the Street. "No matter what others say, all businesses are not suffering,'' Pittman said at the conference. "It is because we have multiple revenue streams from subscriptions, advertising and content.''
- John Higgins