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

To: Glenn D. Rudolph who wrote (112547)	12/8/2000 1:19:54 PM
From: H James Morris	Read Replies (4) \| Respond to of 164684

Glenn, here's a Kiggen update. The only thing that has changed is her price target. "Quitely" she's moved it down from 200 to 60. >AMAZON.COM (AMZN: $21.375) 12/8/00 A Different Kind Of Stock-Picking Annual EPS Prev. EPS 12/01E ($0.55) 12/00E ($1.18) 12/99A ($1.19) Rating: BUY Change: 12-Mo. Target: $60 We spent much of this week as temporary laborers at Amazon's Delaware distribution center, "picking" inventory from warehouse shelves and assembling orders. (We were hired as the result of the standard job application process, without the company's involvement.) This facility appears to account for 20%-25% of Amazon's U.S. unit volume and is focused solely on fulfilling orders for books, music, and videos. While it's imprecise to extrapolate trends from a single DC, in our view the activity levels at this facility demonstrate that Amazon is highly likely to meet or exceed our December quarter revenue estimate of $1 billion. Shipment levels appear to be at least on plan, with a very high backlog of orders to be filled. This is consistent with a back-of-the-envelope we've derived from the "Delight-O-Meter" numbers on Amazon's site and with third-party data that suggests the online retailing market is growing at a 40%-60% rate, with Amazon gaining share (our Amazon model incorporates 48% year-over-year revenue growth). The general takeaway from our moonlighting is that Amazon is executing on its near-term and long-term financial and operating goals: customers are plentiful and active, customer service levels are high, and operations are becoming more efficient. We reiterate our Buy rating.