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

To: Glenn D. Rudolph who wrote (83961)	11/11/1999 5:20:00 PM
From: Robert Rose	Read Replies (3) \| Respond to of 164684

Thursday November 11, 5:05 pm Eastern Time Amazon.com could turn profit at will - Goldman Sachs NEW YORK, Nov 11 (Reuters) - Online retailer Amazon.com Inc. (NasdaqNM:AMZN - news) should achieve full year profitability in 2002, and could achieve profitability right away if the investment community demanded it, investment bank Goldman Sachs said in a research report. Goldman began research coverage of Amazon with a market outperform rating on Thursday and called the Seattle-based company a key long-term Internet holding. ``Amazon is one of a few slect e-Tailers that could achieve profitability today if the investment community demanded it,' Goldman Sachs analyst Anthony Noto wrote in a research note. Amazon captured market attention this week after it opened online ``stores' for home improvement, software, video games and gifts in a bid to add holiday shoppers. Amazon already featured book, video, toy, music and other offerings. ``We believe Christmas and new additional strategic initiatives are near-term catalysts for the shares of Amazon,' Noto wrote. Because Amazon has broad product lines, it doesn't have to achieve a number one market position in each of its businesses. Instead, it can earn revenue in excess of $10 billion over the next five years by being among the top four in each business it enters, Noto said. Shares of Amazon were up 1/8 at 72-1/8 on the Nasdaq stock exchange. For all the optimism, Amazon, like many high-flying Internet companies, has not made a profit since going public. Just last month it warned that quarterly losses would deepen as it spent heavily to attract holiday shoppers. According to First Call/Thomson Financial, the one analyst offering an earnings estimate for 2002 expects Amazon to earn 14 cents a share. Goldman Sachs estimates that Amazon will have a loss of $1.12 per share in fiscal 1999, increasing to a loss of $1.20 in fiscal 2000. That compares to the average forecast cited by First Call/Thomson Financial for a loss of $1.11 in fiscal 1999, and a loss of $1.12 in 2000. One of Amazon's strengths is that it is ahead of its competition, Noto said. He likened Amazon's lead to software development, saying that Amazon is on version 7.0 while other competitors are on version 2.0. It will take time and sufficient learning for its competitors to catch up. Amazon can leverage its capabilities to maintain its leadership position as the number one online ``e-Tailer' against primary competitors Wal-Mart Stores Inc. (NYSE:WMT - news) and Buy.com Inc., Noto wrote. Buy.com said several weeks ago it plans to launch an initial public offering.