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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 249.43-1.8%Nov 4 3:59 PM EST

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To: SJohnson who wrote (11287)7/22/1998 5:01:00 PM
From: Timoteo  Read Replies (3) of 164684
 
Forget year to year. A year ago the stock was at 15. The street looks at sequential growth. Sequential growth was the same as last quarter which is good, but on a higher loss which is bad. In other words AMZN is spending more to get new customers. The question becomes, at what point, if ever, do they actually make money? Normally, one would expect losses to mount as a brand identity is established. Yet, normal companies aren't valued at 100 times year 2001 earnings. Also, in the "new economy" no one is quite certain about the integrity of brand identity. Will AMZN be another Coca-Cola, or will internet players blossom and fade? Regardless, FWIW, I expect a brief bump and a huge sell-off tomorrow. AMZN's real earnings play was the potential split announcement. That would've bought them at least another week of momentum. Without that tulip time is over.

Best Wishes,

Timoteo
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