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

To: dbblg who wrote (78256)	9/23/1999 6:49:00 PM
From: Tom Kearney	Read Replies (2) \| Respond to of 164684

Re: valuations - I don't know about ARBA, but MSFT has a gross profit margin in excess of 90%. Intel's is nearly 60%, and they actually manufacture something (no flames, I'm a software developer, too). Even among some smaller companies, you find a CHKP with a net profit margin of 40%. The S&P 500 has been averaging about 10-15% earnings growth over the last few quarters, but the tech sector of the S&P is closer to 45% growth. The techs not at this level (such as AMZN) still bask in this glory, as expectations are that some of them will reach these levels. This is for me, all the explanation I have needed, and is why I laugh when the guy on CNBC starts talking about 'paper stocks, consumer cyclicals, ....'. He, he, he!