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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 217.21-2.5%3:59 PM EST

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To: IMPRISTlNE who wrote (10092)7/13/1998 5:49:00 AM
From: Arik T.G.  Read Replies (2) of 164684
 
Let's draw an optimistic scenario for AMZN

Annual sales in millions
'98 - 600
'99 - 1200 (What were Barnes&Noble sales in '94)
'00 - 1800
'01 - 2500 (What were Barnes&Noble sales in '97)
'02 - 3400
'03 - 4500
'04 - 6000 (Growth slowing being limited by market size)
'05 - 7000

Gross Margin = 20% constant.
Gross profit in 2005= $1.4B
Operating profit in 2005 = $700MM
Net = $400MM
P/E= 15
Market Cap= $6B
For annual return of 20% compounded, assuming no dilution, today's market cap should be $1.67B or $33 3/4 a share.

AND THIS IS OPTIMISTIC

ATG
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