Capturing The Net's Comeback

"The reason for all the mojo is that Web profits, once achieved, usually rise much faster than sales. Yahoo! (YHOO ), for example, saw 2003 profits jump 456% on a 71% sales gain. Much the same is true at several of our best performers, notably distance-education leader University of Phoenix Online (UOPX ) and e-broker Ameritrade (AMTD ). More operating leverage is coming: Piper Jaffray analyst Safa Rashtchy says profits before interest, taxes, and noncash charges will rise 37% or more in 2005 on just a 23% revenue gain. 'As long as there's that leverage, investors are pretty much safe,' Rashtchy says."