SI
SI
discoversearch

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 217.15-2.5%Nov 20 3:59 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Glenn D. Rudolph who wrote (10046)7/11/1998 10:43:00 PM
From: llamaphlegm  Read Replies (1) of 164684
 
Saw this on TMF. Has anyone posted this here already? If so, my apologies.

LP

P/S reverts to industry mean as sales increase and the company moves out of infancy (unless
the rate of sales growth is increasing, which it isn't. It's decreasing rapidly). It's a fact.
AMZN was rich when you bought it, it is much richer now even with a lower P/S ratio. You
should be suprised that there was no deflation, not inflation is this number.

This is what I'm refering to:

.............. Sales.....Sales Growth
Q2 96........2.2 mil
Q3 96........4.2...........90%
Q4 96........8.4..........100%
Q1 97.......16.0..........90%
Q2 97.......27.9..........74%
Q3 97.......37.9..........36%
Q4 97.......66.1..........74%
Q1 98.......87.4..........32%
Q2 98......103.5*........18% *expected from one analyst

This is the decreasing growth rate I'm talking about. The Price/Sales ratio would be expected to
decline significantly in this case, all else being equal. If the P/S stays the same, the stock is becoming
more richly valued, fact.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext