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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 239.30-1.0%Jan 30 9:30 AM EST

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To: Bill Harmond who wrote (69314)7/24/1999 5:32:00 PM
From: Paul Viapiano  Read Replies (1) of 164685
 
<<<Yahoo and Amazon are in development phases, too. They're just on a different scale, and that takes time. That Yahoo is turning out such operating margins, and free cash flow, at this early stage is phenomenal..>>>

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Also, remember that even tiny start-ups such as you or I would start at home, can be expected to lose money for anywhere from 3-5 years. This applies to companies as small as a lawnmower repair shop or as big as a Sun Micro.

The reason we are seeing such a plethora of companies without earnings is because in the past they would not have been offered to the public until they had earnings. We are now offered these companies much earlier in their startup cycle, which screws up the whole traditional valuation metrics.

Now throw in the fact that these companies are operating in a brand new groundbreaking business or medium that has such broad implications in our technological future, well...you can see where the confusion begins, hence the volatility.
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