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

To: Glenn D. Rudolph who wrote (114860)	1/9/2001 1:10:06 PM
From: H James Morris	Read Replies (1) \| Respond to of 164685

Glenn, has Kiggen ever returned your call? LOL. Btw The only strong buy on Amzn left is Legg Mason. Considering they are the largest elephant owning Amzn stock...do you blame them? <vbg> Kiggen had a $225 price target on Amzn. Wow! how things have changed. >AMAZON.COM (AMZN: $14.9375) 1/9/01 Amazon.Com Announces Preliminary Fourth Quarter Results Annual EPS Prev. EPS 12/01E ($0.55) 12/00E ($1.18) 12/99A ($1.19) Rating: BUY Change: 12-Mo. Target: $45 Amazon.com announced preliminary fourth quarter results yesterday, posting results at the low end of the Wall Street consensus range of estimates for its revenue and gross margin, but better-than-expected cash and inventory positions as well as strong new customer growth. The company announced that its net sales for the fourth quarter will exceed $960 million, 40% growth year-over-year, but lower than our projected $1 billion revenue estimate (47.9% growth year-over-year). The range of Wall Street estimates of its revenue was from $950 million to $1.05 billion. Gross profit at over $210 million is an increase of 140% year-over-year and 26% sequentially, and below our estimate of $239 million. Gross margin was 21.9%, 200 basis points below our model. AMZN increased its cash position by almost $200 million during the quarter, ending with approximately $1.1 billion in cash and marketable securities, up from $900 million in the third quarter, with $35-40 million of that balance coming in the form of equity stakes in partners like Webvan and Sotheby's. This latter sum was down from $95 million in the third quarter. The company's inventory level was lower year-over-year at $175 million versus $220.6 million last year, and up slightly from the third quarter, when inventory was at $164 million. Amazon added 4 million new customers during the fourth quarter, which is better than our estimate of 3 million net additions, and above the 3.8 million new customers in the fourth quarter of 1999. We are reducing our 2001 revenue estimate from $4.1 billion to $3.7 billion and our operating profit decreases by $0.5 million. We maintain our Buy rating on the stock. Our 12-month share price target drops from $60 to $45.