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


To: schrodingers_cat who wrote (141842)4/26/2002 11:53:02 AM
From: Alomex  Read Replies (1) | Respond to of 164687
 
Even some former sceptics seem to have decided that online retailing can be profitable. ;)

I think Amazon has proven that there was money to be made selling books on the Internet. They have also proven that is a low margin business in which execution is very important. As the hype continues to die down and the areas where substantial cuts can be attained dwindle, the true margins of this company will become apparent.

My prediction has always been 3-7%. Which gives a price per share in the $5-$11 dollar range, before we account for debt. Once we include debt, the price per share is in the $3-$10 dollar range.



To: schrodingers_cat who wrote (141842)4/26/2002 4:22:29 PM
From: Glenn D. Rudolph  Read Replies (1) | Respond to of 164687
 
"You have to admit that AMZN is doing much better than expected. It looks like they will be around for a few more years."

The original expectations during the bubble was Amazon would be extremely profitable now. I would say they are doing far worse than expected.

"Even some former sceptics seem to have decided that online retailing can be profitable. ;)"

I always said it can be with a dual model.