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

To: Bill Harmond who wrote (68877)	7/22/1999 12:48:00 PM
From: McNabb Brothers	Read Replies (1) \| Respond to of 164684

This one: Message 10607339 Especially about only hitting the projected number and missing the whisper number. Hank

To: Bill Harmond who wrote (68877)	7/22/1999 3:13:00 PM
From: Glenn D. Rudolph	Respond to of 164684

Price: $110 3/4 Estimates (Dec) 1998A 1999E 2000E EPS: d-$0.25 d-$1.00 d-$0.92 P/E: NM NM NM EPS Change (YoY): NM NM Consensus EPS: NA NA (First Call: 18-May-1999) Q3 EPS (Sep): d-$0.08 d-$0.28 Cash Flow/Share: NA NA NA Price/Cash Flow: NM NM NM Dividend Rate: Nil Nil Nil Dividend Yield: Nil Nil Nil Opinion & Financial Data Investment Opinion: D-2-1-9 Mkt. Value / Shares Outstanding (mn): $18,273.8 / 165 Book Value/Share (Jun-1999): $1.77 Price/Book Ratio: 62.6x Stock Data 52-Week Range: $221 1/4-$13 3/4 Symbol / Exchange: AMZN / OTC Options: Phila Institutional Ownership-Spectrum: 35.1% Brokers Covering (First Call): 23 ML Industry Weightings & Ratings* Strategy; Weighting Rel. to Mkt.: Income: Underweight (07-Mar-1995) Growth: Overweight (07-Mar-1995) Income & Growth: Overweight (07-Mar-1995) Capital Appreciation: In Line (28-Jan-1999) Market Analysis; Technical Rating: Below Average (21-May-1999) Intermediate term opinion last changed on 09-Mar-1999. Post split The views expressed are those of the macro department and do not necessarily coincide with those of the Fundamental analyst. For full investment opinion definitions, see footnotes. Investment Highlights: Amazon.com's Q2 results were merely in line with our estimates—for the first time ever. Fantasies aside, we weren't actually looking for much upside, but times are clearly changing. In the belief that e-holiday euphoria will provide catalysts a-plenty in Q4, we are maintaining our Accumulate rating on AMZN. * Revenue increased a modest 7% sequentially to $314 million, in line with consensus. This was by far the slowest growth in the company's history, and should send any remaining momentum investors leaping out of the stock. * Operating EPS of a loss of ($0.51) met consensus. * Customer accounts increased 2.3 million to 10.7 million, about 400,000 higher than our estimate. * Revenue per account dropped to $29, a dollar lower than expected. * We are raising our 1999 revenue estimate from $1.38 billion to $1.45 billion and our 2000 estimate from $2.1 billion to $2.3 billion. We are lowering our 1999 EPS estimate from ($1.74) to ($2.00) and maintaining our 2000 estimate. * Management continues to invest massively ahead of demand (which still appears to be the best strategy for long-term value creation). Profitability remains a next-milleneum phenomenon. * A 2-for-1 stock split will take effect September 1. Comment United States Internet \ Electronic Commerce 22 July 1999 Henry Blodget First Vice President Amazon.com Q2 Results…In Line ACCUMULATE* Long Term BUY Reason for Report: Quarterly Earnings Merrill Lynch & Co. Global Securities Research & Economics Group Global Fundamental Equity Research Department RC#20120340 Stock Performance 0 20 40 60 80 100 120 140 160 180 200 220 0.00 0.02 0.04 0.06 0.08 0.10 0.12 0.14 0.16 1996 1997 1998 1999 Amazon.com Rel to S&P Composite Index (500) (Right Scale)