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

To: Don Westermeyer who wrote (1209)	1/16/1998 1:02:00 PM
From: doug doan	Read Replies (1) \| Respond to of 164684

Earnings Estimates I have played with the numbers a bit and came up with the following Gross Sales estimate $48 million for quarter. Earlier projects of $38m are way off. AMZN did $37m last quarter and has been steadily increasing gross sales each quarter. Took the arithmetic mean and guessed at a number came up with $48m Gross Margin estimate $8.6 million. Company has averaged gross margin of 18% of sales over last 2 quarters. I assumed that trend will continue. If they can do better than the 18% I would reevaluate my position. If they do worse, company is in much greater trouble than we have yet realized. Operating expenses $20.6m. Here again I took the last two quarters and noted that operating expenses were consistent at 43% of gross sales. Loss per share $.50 Would look forward to comments, might have missed something. The key numbers I will be focusing on is the profit margins. Are they 18% or better. Will also be looking hard at operating expenses, if they stay current at 43% of gross sales the road to profitability will be much longer than people now expect.