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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 229.93+0.4%11:15 AM EST

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To: Techie who wrote (24851)11/7/1998 12:30:00 AM
From: Philip Logos  Read Replies (2) of 164684
 
Techie, you're making too much sense. Cut that out, now. You're ruining that fantasy the bulls and TMF so vehemently cherish. Just when we were thinking that all news was good for Amazon, you tell us that 10 billion in sales equals two dollars per share annually and a pe of 60.

Let me post your paragraph here:

Even if they sell 10B, with a net profit margin of 1% (coming from Perkins), that amounts to ~$2 based on 48M shares. Which gives them a P/E of ~60 on that forward figure. Now you tell me when they'll get to 10B annual sales and what would their growth rate be by that time. This is my only problem with AMZN.

A forward PE of 60, projected out to the year 2005? Not a problem for people in denial of this kind of bad news: Walmart lawsuit, Bertelsmann team-up, Ingram purchase, insider selling.


Phil
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