Amazon.com, Inc. (AMZN) Message Board

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

AMZN 233.22

+1.8%

Nov 28 9:30 AM EST

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To: Bill Harmond who wrote (138606)	2/5/2002 10:48:35 AM
From: GST	Read Replies (1) of 164684

Bill: Valuation for firms with no earnings is no different from valuation for firms with earnings. All valuations are based on future earnings. If a company has no prospects for future earnings it is not in business, it is into some other sort of fantasy entertainment. The further away in time the earnings are, and the the more uncertain they are, the deeper the discount. What this "witch hunt" is doing is causing people to revisit the simple discipline of valuation -- and heaven help you if you own stocks that have been trading at a hefty premium to the market with no earnings and poor or uncertain prospects because those stocks are going to end up worth more as wallpaper.

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