Amazon.com, Inc. (AMZN) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

AMZN 222.55

-4.4%

Nov 18 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: dbblg who wrote (95167)	2/29/2000 3:20:00 AM
From: Bearded One	Read Replies (1) of 164684

Hi. Amazon is a potentially great short not only because of it's future (or lack thereof), but also because of its valuation. Walmart sells at around 1.5 times sales. Amazon is priced at something like 20 times sales. Furthermore, Amazon is highly unlikely to take any prudent financial steps in the near future, since that would be 'traditional' and immediately cause a drop in their share price. They are trying to spend money like a 25 billion dollar company when they don't know how to be profitable even as a bookstore. Thus, they are going to be profligate with their money for some time to come, further guaranteeing financial doom. Of course, all of the above arguments were true when Amazon was at a 5 billion valuation, and then it quintupled in price. But now it feels like the run-up is finished, especially with Greenspan pulling liquiditiy out and inflation coming around. That's why I like Amazon so much as a short.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next