Amazon.com, Inc. (AMZN) Message Board

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

AMZN 244.25

-2.0%

Nov 12 3:59 PM EST

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To: Victor Lazlo who wrote (91101)	1/15/2000 11:21:00 AM
From: Alomex	Read Replies (3) of 164684

Shorting stocks is always a difficult art. About two years ago on a discussion here, we talked about the potential of Amazon to undergo a significant correction, and yet the shorts not make any money. This would occur through a sideways correction, in which the stock would hover around a price for a year or two while fundamentals caught up with valuation. Microsoft was mentioned as one such stock. It is interesting to see that today's closing price is about the same as a year ago, and that the stock has been oscillating around a $70 per share price line for all of 1999 and early 2000. This "oscillating-sideways" move has taken AMZN from a forward Price/Sales ratio of about 60 to about 10. All in all what anybody would call a major correction in the stock (6x) yet one that would have been not profitable for 1998 short sellers. I wouldn't be surprised if AMZN stays around that line for one or two more quarters, until P/S reaches 5 or so, only to then continue its march upwards.

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