Amazon.com, Inc. (AMZN) Message Board

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

AMZN 232.49

+0.2%

Dec 30 3:59 PM EST

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To: Bill Harmond who wrote (134944)	11/18/2001 10:36:23 PM
From: GST	Read Replies (1) of 164684

"P/E ratios only matter in mature businesses" I have never seen a business -- any business -- where investors are not interested in profitability. Some investors will wait much longer than others for that day to come -- but as investors they must have some basis for calculating the returns, however far away they might be in time. High risk companies should sell at a discount, not a premium, to their expected future returns. The farther away in time you are from the expected return and the greater the extent of the uncertainty about how realistic the projections are, the deeper the discount should be. In a bubble, all of this is reversed. You are, IMO, still thinking in "bubble investor psychology" where very risky bets trade as if they are sure things -- with complete certainty that they would outperform expectations to a huge extent. This is called stock speculation, not investment.

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