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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: Alexander Pavlov who wrote (3711)	4/30/1998 1:25:00 PM
From: Oeconomicus	Read Replies (1) of 164684

EBITDMA? Wow! If we ignore the fact that marketing is a necessary expense in any business, especially retailing of a commodity consumer product, Amazon isn't really losing money. Now I understand! Hey, why don't they just capitalize their marketing costs? While we're at it, why don't we add back G&A, product development and cost of sales? After all, if they didn't have employees to pay or product to purchase, their margins would be 100%. EBITDMPDCGSG&A, or simply Sales. Then, since sales would equal profits and sales are growing 100% per year, we could apply a 100 PE to their sales number. Someone said they'd do $500 million this year, so this should be a $5 billion company by year end! Yippee!

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