Amazon.com, Inc. (AMZN) Message Board

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Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 226.19

-1.8%

Dec 12 9:30 AM EST

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To: uptick who wrote (16362)	9/7/1998 4:04:00 PM
From: uptick	of 164684

About the "Junk" Ratings S&P recently assigned AMZN senior bonds [I think S&P was being generous about the ratings. Most analysts and even companies officials expect AMZN to bleed red ink well into year 2000] Standard & Poor's recently assigned its single-'B' rating to Amazon.com's $530 million 10% senior discount notes due 2008. At the same time, Standard & Poor's assigned its single-'B' corporate credit rating to the company. According to S&P, the ratings reflect the company's negative operating cash flow and rapid growth in an evolving marketplace. This necessitates high levels of investment in technology, logistics and marketing, and the potential for heightened competition... Management is committed to aggressive expenditures on marketing and product development. Standard & Poor's expects this strategy will keep the company from realizing positive earnings before interest, taxes, depreciation, and amortization at least through 1998, as it focuses primarily on market share rather than profitability over the near term.

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