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

To: John May who wrote (875)	11/26/1997 9:39:00 PM
From: Oeconomicus	Respond to of 164684

the company's commercial success is being studied closely, as well it should be. Your right John. This would make a great case study. Title it "How to make a billion dollars and never show a profit." It could be a cross-discipline project; the marketing classes can learn about hype; investment classes can learn about failures of efficient markets, madness of crowds, etc.; how about an operations class in how to eliminate the overheads of fixed assets yet still have lower margins and higher prices. Come on John, do you really think the market is valuing this based on "traditional approaches"? Paradigm shift? Shorting the future? Sounds great, means nothing. Just how do you apply that to valuing a business? Last I heard, success in business still requires that you can eventually turn a profit, a return on invested capital. And as for the "zero to $1 billion in a mere 5 years", don't go counting your chickens. Two years in now, they may do what, $125mm or so. That's a long way from $1 billion. Bob

To: John May who wrote (875)	11/26/1997 10:12:00 PM
From: dmccoach	Respond to of 164684

"Regarding Internet stocks, I think he's suggesting that the market is valuing them based on traditional approaches - "old school" financial recipes - but the Internet is not a traditional thing." Let's see... according to this logic, since Barnes has opened an internet site, it now deserves a stratospheric PE -- right? Sure the internet is a new medium, but it's just a channel. The channel is new, but making money is not and AMZN is NOT making money and will not for some time... get real, value the business not the channel. Dan