Amazon.com, Inc. (AMZN) Message Board

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

AMZN 230.27

-0.6%

Dec 11 3:59 PM EST

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To: GST who wrote (145275)	8/12/2002 8:41:15 PM
From: Oeconomicus	Read Replies (3) of 164684

Amortization of (or impairment charges against) goodwill is not a "real" expense? GST, I'm surprised at you. BTW, I agree. And yes, reported earnings (for some companies, but fewer than you seem to think) will be much lower as a result. But those valuing companies in any way that is more in-depth than comparing PEs to the historical average of the S&P 500 will ignore reported earnings even more than they ignore them now. GAAP is full of estimates and reserves and theoretical values that do little to bring clarity to the financial health of the business. Even with companies that aren't fudging the numbers, relying too much on GAAP net income is potentially hazardous.

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