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

To: zTrader_77 who wrote (1068)	12/29/1997 1:21:00 PM
From: John May	Read Replies (1) \| Respond to of 164685

Kirby, Your post begs a question: price-times-sales is based on revenues for the last 4 quarters. Therefore, to be precise AMZN is selling for 14.8 times sales at $56 1/8 per share. But the quarter is nearly over, and as soon as they report (assuming $50 million in revenues which is probably pretty reasonable), price-times-sales will drop to 10.2. Of course all companies' ratios will drop with new results, unless their sales decline, so doesn't a comparison of this ratio from company to company require also a comparison of rate of growth of each? MSFT is selling for something like 15 times sales, so perhaps there are other elements to this equation also. I think this is a valid item in evaluating companies, particularly those with high growth and no earnings, and would like to see more discussion. John May