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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank

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To: Jenna who wrote (34516)4/16/1999 10:59:00 PM
From: gbh  Read Replies (1) of 120523
 
The only problem is that why do they have a negative outlook for EPS growth. They had $0.08 last quarter but now they expect -0.17..

Jenna, E-Trade publicly stated a few quarters ago, they would be forgoing profits for some time, in order to grow accounts with huge advertising budgets.

Look for top line growth, account growth, trading volume growth; all sequential. Earnings mean little right now. They are trying to be "branded" as THE web broker. They are kind of using an AMZN business model right now, but unlike AMZN, they can probably return to profitability at will.
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