Amazon.com, Inc. (AMZN) Message Board

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

AMZN 234.70

-1.2%

Nov 14 9:30 AM EST

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To: Alomex who wrote (1546)	2/11/1998 5:40:00 PM
From: Don Westermeyer	Read Replies (2) of 164684

Alomex, Sure the market fall in love with certain stocks, but eventually reality sets in. Interesting everyone says 'look at AOL' now. In the past it was NSCP. Or Cybercash? or Spyglass? There are lots of examples of high-fliers that crashed! IMO AOL is not a good comparison as they have pricing power AMZN does not. A lot of people will stay with AOL for 10% more just like if the cable company increased prices since it is a hassle to change. AMZN will never have that kind of pricing power. The time to short a stock is when everyone is in awe of the company and are blind to the risks! If the stock was $20/share AMZN would still be a very risky speculative bet. When the market values it at over 10 times (on a P/S ratio) it's competitors (who are better financed) then I have no problem waiting until Bezos runs out of money (or as long as he keeps borrowing at 10% interest)! I agree there will be some covering if the price should plunge, but a lot of the short money is also with professional shorters who won't cover until P/S or P/E come into line with more reasonable numbers. The expectations built into this stock price are laughable! BTW - Don't ask me why AOL is so high! IMO they are another good short candidate (to scared to do it myself though)!

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