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

AMZN 222.69

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Nov 19 3:59 PM EST

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To: John Ke who wrote (10456)	7/15/1998 3:08:00 PM
From: John May	Read Replies (2) of 164684

John, thanks for an excellent response. I reran the numbers using revenues of $110 million and 21% gross profit. To lose $ .43 per share, SG&A would have to be 40% of revenues or $44 million. That's an increase of $16 million or 56% in SG&A quarter to quarter. It's hard to imagine how they could spend that much more in one quarter. SG&A at 35% of revenues would yield a loss of $ .32 per share. As you obviously know, SG&A was 32.3% of revenues 1Q98. What do you think?

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