Those totals were put out by AP...not me.
For your interest.
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SAN FRANCISCO--(BUSINESS WIRE)--April 14, 2000--In light of recent market activity and investor concerns, Robertson Stephens Managing Director and Senior eConsumer Analyst Lauren Cooks Levitan yesterday provided an investment outlook for the eConsumer sector in which she established four categories:
-- Leading eCommerce Platforms - Game-changing businesses that
address the open-ended opportunities with proven execution
skills, such as Amazon.com (NASDAQ:AMZN), eBay (NASDAQ:EBAY),
and Priceline.com (NASDAQ:PCLN).
-- Leading Vertical Players - Companies addressing definable,
vertical markets, such as Webvan (NASDAQ:WBVN), eToys
(NASDQ:ETYS), Travelocity.com (NASDAQ:TVLY) and Alloy Online
(NASDAQ:ALOY). These companies have sufficient cash on hand to
fund growth and appropriate investment in the business for at
least several quarters.
-- Challenged, Yet Salvageable - While these companies are
challenged by their cash positions and/or business models,
they have achieved critical mass, established points of
differentiation and possibly have assets of value to other
companies. As a result, we believe these players could have
the ability to successfully raise additional capital.
-- Challenged - Companies with less than one year of cash and
less believability around the ability to drive growth while
cutting expenses given competitive challenges and/or flawed
models.
"These categories will help investors make sense of a crowded space that is clearly undergoing a major shake-out," said Levitan.
Levitan continued: "The rules of the game have obviously changed. Investors are no longer buying into the `land grab' theory, which focused on building a brand and customer base at any cost. The new rules are more defensive in nature, demanding profits and customer retention, not just customer growth."
Despite recent market activity and investor concerns, Levitan sees the continued increase in online purchases by consumers as signaling a major channel shift. "There are strong fundamentals on the demand side which places a premium on proven eCommerce strategies," said Levitan.
For a copy of Levitan's recommended investment picks for the eConsumer sector, please contact Elizabeth Denton at (202) 326-1796.
Robertson Stephens is the leading full-service investment bank focused exclusively on growth companies. The market leader in technology IPOs, Robertson Stephens completed 384 transactions in 1999, valued at $100 billion, including 233 IPOs, follow-ons and convertibles, 66 private capital deals and 85 M&A deals. The firm's 47 equity research analysts cover nearly 700 companies. Founded in 1978, Robertson Stephens (Legal name: FleetBoston Robertson Stephens Inc.) is a section 20 subsidiary of FleetBoston Financial Corporation (NYSE: FBF) and a member of the NASD and all major exchanges. Together, Robertson Stephens, FleetBoston Robertson Stephens International Ltd., and Robertson Stephens Evergreen Securities Ltd. has over 1,200 employees worldwide with offices in Boston, San Francisco, New York, Menlo Park, Chicago, London, Munich and Tel Aviv.
FleetBoston Robertson Stephens Inc. ("Robertson Stephens") is a wholly owned subsidiary of FleetBoston Corporation and is an NASD member and a member of all major exchanges and SIPC.
The foregoing synopses are qualified in their entirety by the more detailed information contained in the full research reports, including the discussion of certain risks associated with an investment in the above-mentioned securities contained in "Investment Risks."
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Seattle, April 14 (Bloomberg) -- Amazon.com Inc., the biggest Internet retailer, hired software maker Greyhound Technologies Inc. to help it develop a system to better handle orders and distribute products.
Closely held Greyhound provides software and services that help companies cut logistics and distribution costs by improving the way they keep track of inventory. Greyhound has worked with Amazon.com in the past, the company said.
Companies that sell books, electronics and other products on the Internet are focusing on ways to improve their distribution systems to meet growing demand for online shopping. Some companies, like the online unit of Toys ``R' Us Inc., had trouble filling orders and shipping goods during the holiday shopping season.
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Seattle, April 14 (Bloomberg) -- Amazon.com Inc.'s shares fell 31 percent this week -- giving the retailer its biggest one- week decline ever -- as investors backed away from unprofitable Internet companies.
The stock today fell 1 1/8 to 46 7/8 and dropped four of the last five days. The week's decline surpassed Amazon.com's 21 percent drop during the ended May 7. The Nasdaq Composite Index fell 9.7 percent today, wrapping up the worst week in its 29-year history.
``It seems like there's been a flight from the concept stocks to companies that actually have earnings,' said Alan Loewenstein, co-manager of the John Hancock Global Technology Fund, which sold its Amazon.com holdings late last year.
The fund, which has about $327 million in assets, is focusing on semiconductor-equipment, telecommunications and communications infrastructure stocks, Loewenstein said.
However, he's looking at consumer-related Internet stocks again now that the prices have come down. Other Web merchants such as Buy.com Inc., eToys Inc., Pets.com Inc. and Drugstore.com Inc. have fallen by a quarter or more this week.
The Nasdaq index today fell 9.7 percent in its second-biggest decline ever, dropping 356.74 to 3,320.04. For the week, the index fell 26 percent.
Seattle-based Amazon.com's shares have fallen by more than half from their record of 113 set on Dec. 9.
Narrower Gap
The kinds of announcements that traditionally fueled shares of Amazon.com haven't had the same effect recently. On July 13, when the company said it would sell toys and electronics, the stock jumped 7.5 percent. When a lawn-and-patio store was unveiled April 5, the stock fell 2.7 percent.
The company, which has lost $882 million through 1999, is expected to report another quarterly loss later this month.
Amazon.com hasn't declined as much as some other online merchants, but by certain measurements the gap between Amazon.com and its rivals has narrowed, analysts said.
``The premium that the company has had with respect to other retailers has shrunken dramatically,' said Sashay Kostadinov, a McDonald Investments Inc. analyst who has an ``aggressive buy' rating on Amazon.com.
The stock trades at 5.9 times his sales estimate for the year, compared with 3.5 times for Barnes & Noble.com Inc., he said. About a week ago, Amazon.com traded at about twice the price- to-sales ratio of Barnes & Noble.com, he said.
Internet Stocks
Internet stocks also have been dragged down by concerns about cash shortages. Earlier this week, Internet research firm Forrester Research Inc. said most online retailers will go out of business by the end of next year because of competitive pressures and funding problems.
However, the report said Amazon.com should continue to be an industry leader.
``People are selling first and asking questions later, and when the dust settles, investors will first turn to the winners. Amazon.com will be one of them,' said Salomon Smith Barney analyst Tim Albright, who has a ``buy' rating on the stock.
Amazon.com said its operating loss is expected to decline every quarter this year.
During the holiday shopping season, Amazon.com ``completely separated ourselves from everyone else in this business,' said company spokesman Russell Grandinetti. ``We're very optimistic about what we can deliver to shareholders over time.'
Apr/14/2000 16:38
Amazon.com started selling books on line in 1995 and has since added toys, consumer electronics and other products. It has invested in other Internet retailers, and has said it wants to add services, increase retail partnerships and expand internationally.
Both companies are based in Seattle. Shares of Amazon.com fell 1 1/8 to 46 7/8 on the Nasdaq National Market.
Apr/14/2000 16:19 |
