Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : eShare Technolgies (ESHR) -- Ignore unavailable to you. Want to Upgrade?

To: Paul A who wrote (74)	12/9/1999 8:35:00 PM
From: Tom Hua	Respond to of 653

December 9, 1999 Tech Stocks Amazon.com Shares Surge On Hopes for Holiday Sales By CHRISTOPHER GRIMES Dow Jones Newswires Amazon.com shares surged Thursday after a J.P. Morgan analyst issued a "buy" recommendation on the Internet retailer's stock, projecting Amazon will have a "huge" December quarter. J.P. Morgan analyst Tom Wyman, who sees Amazon's sales increasing 125% this holiday quarter, set a 12-month price target of $160 for the stock. That would be an 82% increase from Wednesday's closing price of $88.563. Thursday on the Nasdaq Stock Market, Amazon shares gained 15 1/16, or 17%, to close at 103 5/8 at 4 p.m. Volume was heavy at 41.3 million shares, compared with average daily turnover of 13.3 million. Meanwhile, the Nasdaq Composite Index gained 8.14 to 3594.22 and Morgan Stanley's high-tech 35 index advanced 0.27 to 1709.84. The Dow Jones Internet Index rose 9.25 to 375.96. Mr. Wyman initiated coverage of Amazon and fellow Internet retailer eToys, saying the "e-tailing" sector is "worthy of investment," although he cautioned that investors should take a "disciplined" approach to the group. The analyst assigned eToys a "market performer" rating, citing increased competition in the online toy space. Although Mr. Wyman was bullish on Amazon's holiday-quarter sales, he doesn't see Amazon posting a profit anytime soon. "We do not expect Amazon to generate operating income until 2002," he said. Increased sales at Amazon come as the company continues to expand, at the sake of near-term profits. A month ago, the electronic retailer opened four new online stores focusing on home improvement, software, video games and gift ideas. The company, best known for its pioneering Internet bookstore, also said last month it acquired Tool Crib of the North, a tools and equipment catalog company, to bolster its home-improvement offerings. Amazon is hoping to take advantage of consumers' appetite for such goods during the holiday season and that has apparently worked. But analysts last month agreed the costs of launching the new stores won't help to erase the red ink at Amazon, which has frustrated some investors with a string of losses. Search Past Columns: For a list of recent columns, just press the search button. Or, search for past columns containing these words: The Seattle-based company has been expanding aggressively, and now sells books, music, videos, toys and electronics from its own warehouses -- as well as an almost endless range of merchandise listed by independent merchants. But Amazon's founder and chief executive officer, Jeffrey Bezos, has even bigger ambitions. He said in October he wants Amazon to be the place "where customers can find anything -- with a capital A -- that they might want to buy online." In September, Amazon opened its Web site to include more than 500,000 items for sale by a flotilla of smaller merchants, with Amazon hoping to become the toll-taker for vast amounts of electronic commerce. "It'll take time for these investments to pay off," Mr. Bezos said at the time. Thursday's Market Activity Elsewhere in the technology sector, Lycos gained 8 3/8 to 85 9/16 on Nasdaq. The Web hub confirmed that it is considering a public offering for its European Internet joint venture with Bertelsmann (see article). National Semiconductor rose 5 1/16 to 51 on the New York Stock Exchange, after the chip maker reported second-quarter earnings that handily beat Wall Street's most optimistic estimates (see article). MessageMedia gained 2 11/16 to 16 3/4 on Nasdaq. The company agreed to provide e-messaging services for Cisco Systems. Internet Capital Group gained 28 3/16 to 241 1/2 on Nasdaq. The Internet investment firm said it agreed to sell a $50 million stake to AT&T and explore various potential strategic relationships with the telephone and cable giant. The announcement confirms news contained in a filing made earlier in the week. EShare Technologies rose 5/8 to 10 1/16 on Nasdaq. The company said it will provide real-time online customer service for Biztravel.com, a unit of Rosenbluth Interactive. Mastech rose 3 1/16 to 22 11/16 on Nasdaq after the company told some investors Wednesday it was cautiously optimistic about the outlook for its fourth quarter. Mastech was said to have alerted some investors that its fourth quarter was "tracking a little better than they had thought," according to Goldman Sachs & Co. analyst Meg Saegebarth. The company may have overestimated the impact year-2000 problems would have on its consulting business, she said.