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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 231.69+1.7%Dec 10 3:59 PM EST
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To: Eric Wells who wrote (69587)7/26/1999 12:37:00 AM
From: Jeff Dryer  Read Replies (1) of 164684
 
Eric,

I believe that it might be the analysts who are misleading and at fault. Has Henry Blodget ever explained to the public what year he thinks Amazon.com will be profitable? And how profitable will it likely be if it is ever profitable? I don't think so. But almost every investor in the country heard about his "Strong Buy" ratings and big price targets. And for most investors, price targets are all that matter, because investing for them is like going to the race track, going to Las Vegas, or going to a candy store.

At the annual shareholder meeting held in Seattle about two months ago, several shareholders asked questions about future profitability. My recollection is that Jeff Bezos gave many in attendance the impression that Amazon.com might not be profitable for 10 years if ever and that if Amazon.com is profitable, net profit margins would quite possibly be very low (low single digits).

Either Jeff Bezos or the CFO or both stated that the long-term financial goal was to optimize the number of net profit dollars, not the profit margins (in optimizing the net profit dollars, margins may turn out to be high or low... and again it was acknowledged that they may never be profitable).
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