AMAZON.COM (AMZN: $93.25)# 10/08/98
Consolidation in Online Retailing
Earnings Per Share Old New P/E Ratios
(FY:Dec.) 1999E $(1.37) $ NA
1998E (1.60) NA
1997A (0.49) NA
Rating: BUY Change: None 12-Mo. Target: $175
We believe that AMZN is one of the great Internet investment stories over the next five years. That the Internet has become a viable retailing medium is largely due to Amazon's success at creating a "total value" commerce experience for consumers. This skill set, composed of branding, content development, backend technology, and fulfillment, separates it from every other Internet retailers; when combined with 3.14 million happily transacting customers, Amazon has a massive competitive barrier, not only in its native book market ($82 billion), but in any additional vertical category it chooses to enter. Unfortunately, AMZN is not likely to ever be a value play, even if it sells off on profit-taking and valuation confusion in the near term. Make no mistake, though: we believe the long-term trend for AMZN will be relentlessly positive.
The following information is relevant to those companies whose ticker symbols are followed by one or more of the designations below:
# AN AFFILIATE OF DONALDSON, LUFKIN & JENRETTE SECURITIES CORPORATION MAKES A MARKET IN THIS SECURITY, HAS PERIODIC POSITIONS IN THIS SECURITY IN CONNECTION WITH THIS ACTIVITY AND MAY BE ON THE OPPOSITE SIDE OF PUBLIC ORDERS EXECUTED ON A REGIONAL STOCK EXCHANGE WHERE IT ACTS AS A SPECIALIST.
* DONALDSON, LUFKIN & JENRETTE SECURITIES CORPORATION OR AN AFFILIATE MAKES A MARKET IN THIS SECURITY AND HAS PERIODIC POSITIONS IN THIS SECURITY IN CONNECTION WITH THIS ACTIVITY.
+WITHIN THE PAST THREE YEARS DONALDSON, LUFKIN & JENRETTE SECURITIES CORPORATION HAS BEEN A MANAGING OR CO-MANAGING UNDERWRITER OF THE COMPANY'S SECURITIES.
++ AN OFFICER, DIRECTOR OR EMPLOYEE OF DONALDSON, LUFKIN & JENRETTE SECURITIES CORPORATION OR AN AFFILIATE IS A DIRECTOR OF THIS CORPORATION.
@ DONALDSON, LUFKIN & JENRETTE SECURITIES CORPORATION HAS FROM TIME TO TIME PROVIDED INVESTMENT BANKING SERVICES TO THE COMPANY AND HAS BEEN COMPENSATED FOR THOSE SERVICES. |
