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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 236.44-0.5%10:32 AM EST
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To: Glenn D. Rudolph who wrote (78597)9/26/1999 1:31:00 PM
From: Eric Wells  Read Replies (1) of 164684
 
>>He was out of line making that comment.

Glenn - I have to strongly disagree with you on this one.

For years, both Ballmer and Gates have made comments off and on indicating that they have felt Microsoft's stock price is too high. It just so happens that when Ballmer made such comments on Thursday of last week, the financial press latched on to it - and it was suddenly a "story". That the market should react to the words of Steve Ballmer is a clear indication that this market is very nervous - that it is not on solid footing.

Ballmer has access to a lot more information about Microsoft than any analyst. And Ballmer is actually a very bright guy. If you think about it, Ballmer went out on a limb in making his statement - he potentially angered a lot of his employees as well as many of his stockholders, and he might have possibly opened the company up to additional frivolous stockholder lawsuits. But in reality, he told the truth - and perhaps Ballmer sees a situation where stock prices have risen to unsustainable heights - and perhaps, his words were motivated by the desire to see prices come down gently before the whole market collapses.

I can understand putting greater trust in an analyst than the president of a company when the analyst is saying that the company's stock price should be lower, and the president is saying it should be higher. But when the roles are reversed and the president is saying the stock price should be lower (and under these market conditions when analysts tend to be saying only positive things about technology and internet stocks), I'd have to put greater trust in the president of the company. Why would you put greater trust in the analyst in this case?

Thanks,
-Eric
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