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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Olu Emuleomo who wrote (62853)	6/16/1999 11:35:00 AM
From: Doo	Respond to of 164684

Sounds like the oil industry analysts when those issues were nearing their 200 day moving averages during the summer of 1998, huh Olu? ;)

To: Olu Emuleomo who wrote (62853)	6/16/1999 12:53:00 PM
From: Rob S.	Respond to of 164684

I agree with this assessment. The CPI report helps to ease interest rate worries and increases the odds that the Fed will not tighten interest at the upcoming meeting. My bet is that interest rates will not be raised and only warnings of possible action in the future will be issued. Greenspan has increasingly discussed the mitigating factors of productivity improvements and pricing dynamics caused by information technologies and the Internet. He said that it is difficult to forecast how long or to what extent these emerging factors will provide positive influences to counter inflationary pressures. In light of that, I believe that the mood of the Fed is, as they have stated, is to be biased toward tightening but that the latest signs of moderating inflation will prevent action at this time. This bodes well for growth, certain cyclicals (those that have favorable product pricing) and interest rate sensitive stocks. My guess is that the Internet sector has seen the bottom and will be in an uptrend through the July 4th holiday period. However, there is less likelihood that the sector will soar without interruption than during the more favorable market and seasonal periods of last winter. It will be much more a stock pickers market. Is this the bottom for the year? If fund and other capital flows truly reverse the negative trend of the past few months and the Fed does not tighten liquidity further than it has, then the market should be poised for an earnings driven rally going forward. We still are in a seasonally weak period for tech stocks and Y2K and further inflation concerns are unknown variables, but the immediate outlook has improved. A word of caution about AMZN is that they expect to show deepening losses for the nxt 2-3 quarters due to the rising capital and promotion expenditures. In a market in which many companies will be reporting great earnings growth, Amazon may not look as favoable as some other Internet or growth stocks. I still think that the big move in the Amazing one will wait til the Christmas season.