Amazon.com, Inc. (AMZN) Message Board

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

AMZN 227.90

+0.4%

3:59 PM EST

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To: MrLuckyman who wrote (22038)	10/17/1998 1:04:00 AM
From: umbro	Read Replies (1) of 164684

Beyond the valuation correction, one factor dragging Net stocks as a group down farther and faster than the overall market is the liquidity issue, noted Marc Usem of Salomon Smith Barney. As much as I like a good theory on why stock prices move as they do, or why Amazon's price might fall ... the above statement doesn't make much sense. IBM, which most would agree is a "liquid" issue trades an average of 4.7 mil. shares/day, and has a $135 price. Amazon trades an average of 4.2 mil. shares/day, and has a $100 price. There's no liquidity issue there, that I can determine. If what they're saying is: when the bottom falls out, there will be no bids, and the stock price will be 50% off, so be it. But really, just throwing the "L" word around is misleading. The problem with the price of most net stocks is valuation pure and simple.

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