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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 232.50+0.1%Dec 26 3:59 PM EST
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To: OtherChap who wrote (14762)8/27/1998 10:23:00 AM
From: IceShark  Read Replies (2) of 164684
 
WrongWay OtherChap,

I do not think is is now appropriate to compare AMZN to Cendant or get your hopes up that a Cendant-like hit would occur for that reason. AMZN has several areas where they push the envelope on GAAP and report results which are in fact misleading. However, everyone and their brother is doing it and no one seems to care, with the one lonely exception of the SEC. The public accounting firms, AICPA and "investors" sure as hell don't care.

The AMZN accounting issues I think are important are employee stock options, potential one time write offs of goodwill on acquisitions to overstate future earnings and growth rates, calling operating expenses like marketing an extraordinary expense &/or non-operating expense. Then we have those outrageous "pro-forma" financial press releases that report EBITDA variant results to keep the smoke and mirrors going.

But anyone with a couple of intro accounting and finance classes can see through that, if they want to see. However, if faced with these facts the bulls can simply fall back to some variant that AMZN is to commerce as MSFT is to PC software. So, if they are willing to pay up big bucks now, on the come, rationality doesn't matter.

Regards, IS
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