Amazon.com, Inc. (AMZN) Message Board

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

AMZN 237.58

-2.7%

Nov 13 3:59 PM EST

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To: H James Morris who wrote (3123)	4/17/1998 4:31:00 PM
From: RFF	Read Replies (1) of 164684

Finishing near the low of the day while the rest of the market rallies into the close.......could be the start of the slide. The tripling of outstanding shares is interesting. With cash and investments of about $120 million at the end of the year, I think they will use them to raise more cash soon, not split their shares. Although they could do both...... "At December 31, 1997 the Company's cash and cash equivalents were $109.8 million." "The Company believes that current cash and cash equivalent balances and short-term investments will be sufficient to meet its anticipated cash needs for at least 12 months. However, any projections of future cash needs and cash flows are subject to substantial uncertainty. If cash generated from operations is insufficient to satisfy the Company's liquidity requirements, the Company may seek to sell additional equity or debt securities or to obtain a line of credit. The sale of additional equity or convertible debt securities could result in additional dilution to the Company's stockholders." I doubt they will use those shares to split the stock, but its possible. I think they want to take advantage of the excessive valuation and issue more shares at these prices. They'll also use those shares to hand out more and more stock options eventually further diluting shareholders. Who knows............

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