Amazon.com, Inc. (AMZN) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

AMZN 221.24

-0.6%

Dec 17 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Norman Klein who wrote (3827)	5/2/1998 3:42:00 PM
From: William T. Katz	Read Replies (2) of 164684

CDNow is a better short. I've just made short positions in both AMZN and CDNow, but CDNow is more overvalued. From the simple P/S, AMZN is at $94 with $87 million in last qtr revenue while CDNW is at $30 with $10 million in last qtr. The main reason any of these internet stocks are highly valued depends on the name recognition. Here, Amazon.com is known and it is not necessarily tied to just books. CDNow, on the other hand, is both more obscure and its tied to CDs. Competition, as you state, is fierce for CD sales and know CDNow must contend with K-Tel (which doesn't look too bad), Music Boulevard, Amazon.com, Borders, and lots of non-exclusive CD sellers. CDNow growth rate is simply not impressive. Even if you assume $50 million in annual revenue, CDNow is heavily overvalued. I plan on accumulating a larger CDNW short if it moves higher.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next