Retailer Amazon.com Shares Worth 25 at Most, Barron's Says
Bloomberg News
May 1, 1999, 12:34 p.m. PT
New York, May 1 (Bloomberg) -- Shares of Amazon.com Inc.,
the largest Internet retailer, are worth 25 at most when its
revenue, losses and gross margin are taken into consideration,
Barron's reported in its ''Up & Down Wall Street'' column. The
company, which this week reported widening first-quarter
operating losses and increasing marketing costs, won't make money
anytime soon because of its aggressive growth program and heavy
spending on sales and marketing. The company, which has gross
margins of 23 cents of every sales dollar, is selling for around
33 times revenue, while Barnes & Noble Inc., the biggest U.S.
bookseller, has gross margins of 27 to 28 percent and sells for
0.8 times its revenue, Barron's reported.
Amazon.com's first-quarter loss rose to $61.7 million, or 39
cents a share, from $10.4 million, or 7 cents, in the year-
earlier period.
|
