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

To: Iris Shih who wrote (69170)	7/23/1999 1:47:00 PM
From: Rob S.	Respond to of 164687

<Everyone is expecting the big drop> . . . On the contrary, investor sentiment indicators are very bullish and analysts expectations are among the highest they have ever been - few investors or analysts think that there will be a "big drop" similar to last year. I doubt that will happen either. But the oct-sep period are historically the worst months of the year - and high beta/valuation stocks tend to get hit the most during seasonal downturns. However, the longer term trend is that tech and Internet stocks will see higher gains than the general market due to underlying growth, IMO. A drop may have already occurred for many Internet stocks. However, the stock market is just like any other market - it is ruled by supply and demand. On the supply side, we have more .coms coming public almost every day, increasing the possibilities for investors. As many new companies soar, Amazon and other large cap Internet plays have been relatively flat. That dissipates some of the enthusiasm for the old (Internet time) Internet stocks. On the supply side, the fed is much less likely to pump money into the economy like it did last year and mutual fund flows have seen a lessening of investment in Internet sectors compared to the rapid growth seen last year. overall flow into mutuals has lessened recently and a rotation into cyclical weighted and foreign funds has occurred. An early rally will depend on investors catching the ecommerce Christmas fever early, IMO. I have no way make a good guess on that.