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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 237.58-2.7%Nov 13 3:59 PM EST

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To: KeepItSimple who wrote (67982)7/16/1999 4:26:00 PM
From: Greater Fool  Read Replies (2) of 164684
 
>>When most of the market switches from a fundamental valuation method

Sorry for poking my head out of lurkville, but I couldn't resist jumping in.

A major fallacy with this (and many people's) thinking is the assumption that the situation is binary: fundamental vs. not fundamental. Those are two extremes; in fact, valuations always have some fundamental component (even our beloved Amazon does have revenues and a future) and some speculative component (even the most sound discounted cash flow analysis involves speculation about the future cash flows). So the valuations aren't sound from a purely fundamental basis? We all know that; get over it and let's discuss something else.
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