Amazon.com, Inc. (AMZN) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

AMZN 240.87

+3.4%

3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Sabrejet who wrote (75011)	8/21/1999 10:50:00 PM
From: Glenn D. Rudolph	of 164684

Earnings Per Share Old New P/E Ratios (FY:Dec.) 2000E $3.00 $ 25.9 1999E 2.00 38.9 1998A 0.81 96.0 Rating: TOP PICK Change: None 12-Mo. Target: $120 WCOM shares are down 6% intraday, driven lower by fears that the company's new consumer plan featuring 5 cents per minute all week long (not just on Sundays, as in the company's previous plan) will hurt earnings. We view today's selloff as a major overreaction by an investor base already wary of anything smelling like commoditization of long distance voice in the wake of weak results from Frontier, Teleglobe and others as well as a modest slowdown in MCI WorldCom's growth in 2Q. WCOM shares trade at only 26x year 2000 EPS, a modest 10% premium to the market, and only 10 times estimated year 2000 EBITDA; we believe this is highly attractive considering a projected strong 50% growth (1998-2003), driven by consistent 15-20% revenue growth, margin gains from MCI merger synergies and the benefits of deleveraging and the shrinking impact of goodwill amortization. We target the shares at $120 over the next 12 months (54% upside), or 30 times our year 2001 earnings estimate of $4/share. (12:45 PM EST)

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next