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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 248.41+1.6%Nov 10 3:59 PM EST

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To: tonyt who wrote (10928)7/20/1998 6:38:00 PM
From: llamaphlegm  Read Replies (3) of 164684
 


From TMF. Thoughts?

Mclaus said:
"Is the assumption here that AMZN would use equity to fund an acquisition?

If so, wouldn't the acquired be extremely reluctant to accept stock as inflated as AMZN? And if so,
wouldn't they sell it as soon as they get their little hands on it?

My point is that maybe an acquisition announcement would actually feed the bears. It might just be
announcing that some large number of shares are about to get sold."

I thought about this and agree. Seems to me that if Amazon tries to expand before it has proved its
already tenuous and unproved business model, the investor community would consider such an
expansion as thinly leveraged and speculative.
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