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: Don Westermeyer who wrote (1550)	2/11/1998 6:28:00 PM
From: Alomex	Read Replies (1) of 164684

If the stock was $20/share AMZN would still be a very risky speculative bet. Now, now, get real. I'm big time bearish on this stock, but I would have no problem paying $20 per share for Amazon. It would give it a forward P/S ratio of 1.5 for a rapidly growing company. Quite a while ago I mentioned here that this sort of rapidly growing companies gain value rapidly. $18 per share was expensive early on 1997. Today is a reasonable price. IMHO the share price goes up an average of $0.25 to $0.50 per week, as long as the growth is still there. This makes the price of the stock a moving target. At some point revenue growth hits a wall and the big correction back to this moving target ensues. This is why AOL, even after the big correction, failed to make money for most shorts: it corrected to a moving target that had gone up quite a bit with time.

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