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

To: Marshall001 who wrote (69498)	7/25/1999 8:40:00 PM
From: Eric Wells	Read Replies (1) \| Respond to of 164684

>>The first thing I learned was not to get >>emotional about the company. Good point - and I agree with your earlier comment about not holding your short over the weekend (I should have covered mine on Friday - and I'm well aware there is a chance I will take a loss on the position tomorrow). I find the activity of AMZN stock as well as this discussion thread interesting because I see Amazon as being at the center of what one might call the "Internet stock over-valuation controversy". The fact that AMZN stock should remain buoyant, and even increase in value while the company faces mounting losses is suggestive of one of two things: 1. Investors are so convinced of the future success of Amazon that they see no need to evaluate the company using established metrics used in evaluating other retail companies - at least not for the time being - and they assume that the future revenues and profits are bound to develop, taking little account of the risk. <<or>> 2. AMZN stock has come to represent something other than the value of Amazon as a company - it could be suggested that the stock is being used as a sort of vehicle for "gambling", where little tangible data is available to justify the price - when investors buy or short the stock, they are in essence making bets on the direction the stock will move (and not on Amazon's projected revenues/profits). I would like to believe in reason 1 above, as it suggests that markets still work - however, with the stratospherically high market valuations that some internet companies enjoy, I'm inclined to think that reason number 2 holds more truth. Thanks, -Eric