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

To: Hungry Investor who wrote (157457)	5/23/2003 11:34:42 PM
From: Lizzie Tudor	Read Replies (3) \| Respond to of 164684

I am very informed on the issue of stock options and agree that they should be expensed. This significantly reduces these companies earnings as you have mentioned. However, I'm a bigger believer in analyzing cash flows. If you look at this metric, these companies perform poorly. The tech companies that use options will simply cease to use them if options are expensed. Yahoo has already stopped issuing options for the most part. Then there is the issue of the residual options, but I suspect the earnings statements will be worded in such a way for investors to tell that these were past grants. So overall, my guess the options issue as an argument for the bearish case is overrated. There is a class of investors looking for growth and I don't think they care about options, after all everybody knows this issue is out there and ebay was the only stock to rise in the summer. I wonder if amzn curtailed their options grants when they started expensing? I don't know anybody that works there but I'd sure like to know.