Amazon.com, Inc. (AMZN) Message Board

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

AMZN 228.28

-0.6%

11:43 AM EST

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To: marion (Hijacked) who wrote (4404)	5/17/1998 9:22:00 AM
From: John May	Read Replies (3) of 164684

Marion, The parallels between Iomega and Amazon that the message you posted opined are lofty evaluation and low margin. Amazon is a high beta stock. Lou Holland on WSW predicted Friday an 8% correction. In such a scenario AMZN might correct 25%, maybe more. It's the risk one takes with such stocks. It's what has appealed to the shorts sellers. Lofty evaluation has a downside. No one disputes this. AMZN sells what is to BKS and BGP a low margin product, but AMZN's method of distribution is entirely different, so what may be low margin for others may not be so low for AMZN. The method of distribution is new and explosive - features that did not characterize Iomega's market. What's being said on this thread today re: AMZN's valuation are the same things that were said when AMZN was selling for 80, 70, 60, 50, 40, and even 30. This is obviously more than just a short squeeze run-up. The Internet is making the difference, and that's where comparisons of Iomega and Amazon don't hold water.

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