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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 220.66+1.6%Nov 21 9:30 AM EST

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To: fedhead who wrote (130877)9/3/2001 1:57:57 PM
From: GST  Read Replies (1) of 164684
 
Anindo: It would be a good idea to think about "valuation, valuation, valuation" before buying stock. If there is any message in what has happened in the past two years, it is that valuations are the key, not prices, and certainly not how far something has declined in price. Valuations are based on sustainable growth in sales, growth in earnings and the degree of risk and cyclicality in both sales and earnings. The lack of earnings, the likelihood that growth was not sustainable, the risks of unproven trends and the cyclical nature of tech stocks all suggest that tech stocks on the whole should trade at a low multiple, and at a discount to the market. Tech stocks are nowhere near the levels which valuation would suggest they should be. If valuation wins out over blind faith and hope, then we are still in the middle of deflating a bubble. Good luck.
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