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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 233.22+1.8%Nov 28 9:30 AM EST

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To: Rob S. who wrote (23331)10/28/1998 9:48:00 AM
From: SilverAG  Read Replies (3) of 164684
 
It looks like Wall Street has now focused on the operating earnings for eBay, .05, instead of the adjusted earnings. So I stand corrected- the Street will look at the operating results for the AMZN like you said in your post. This is a real disappointment to me- what's the point of spreading out a charge over 3 years if people just ignore it?

I still expect that investors will be thoroughly confused by the different sets of numbers when earnings come out. You may see a large negative eps result that includes the amortization charge. But, most likely investors will focus on operating results, especially revenue growth, gross margins, and operating costs.

BTW, the purpose of my earnings analysis post last night was to only show that the amortization charge has not been factored in to analyst's estimates. The operating EPS number (0.40) I derived is in no way what I believe to be the real number. Expenses due to European expansion and higher operational costs will likely take a big bite out of earnings.
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