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

To: zax who wrote (113392)	12/25/2000 3:20:54 PM
From: GST	Read Replies (1) \| Respond to of 164684

z: It is, I believe, impossible for those who were blinded by "new economy" stock prices of last March to realize that a stock down 90% can go down a further 90%. With 100 bankrupt net companies according to media reports, you would think that the thought of bankruptcies taking down the whole sector would be sinking in by now. For Yahoo, the heady growth days are over. Yahoo will be lucky if it does not begin to shrink. And what is a shrinking Yahoo worth? Certainly not 60 times trailing earnings. I laugh myself silly when I hear people quote the "forward pe" of Yahoo. If Yahoo is indeed set to grow slowly or shrink its revenues, the pe of Yahoo is going up as we speak. A 15% drop in Yahoo revenues could cut their profits substantially -- lets say in half for the sake of argument. That gives you a forward pe of 120-150 for a shrinking company in a sector where a company a day is going bankrupt. Yahoo can easily have a single digit stock price. Merry Christmas and good luck.