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


To: Bearded One who wrote (99012)4/5/2000 1:01:00 PM
From: HG  Read Replies (1) | Respond to of 164685
 
How are they inconsistent ??? I said if tech stocks got out of hand, the markets corrected them by basing them...and very well...

MSFT was a growth stock for so many years...DELL was too, for a while...both were based pretty well in the year that went by....and neither of them crashed dramaticaly....so basically in the long run, the market takes care of valuation issues of strong companies, without really killing the company....

Price rises not only with inflation, but with the growth the company exhibits as well.....and CSCO shows a great growth, as does YHOO (just two examples I mentioned earlier)....and is rewarded accrodingly....when this increase goes out of whack, the market allows for basing....thereby bringing the revenues in line....and eventually YHOO will trade at a very reasonably PE....but as long as we have explosive growth in revenues, we have explosive growth in the prices...the %age increase in revenues is mostly less than %age increase in stock prices every year...and slowing too...

I know this is an arguement which can go on, and on, and on....I I think its the number x+1 arguement I have had on this board....it gets boring after a while....so please excuse me and please don't take offence if I choose not to continue with it....

Happy trading...