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

To: Tom D who wrote (1754)	2/26/1998 6:58:00 PM
From: cellhigh	Read Replies (1) \| Respond to of 164684

TOM, WALL ST. LUVS THE MANAGMENT ALSO. short positions are'nt hurting us(longs) either.

To: Tom D who wrote (1754)	3/2/1998 3:15:00 PM
From: RagnBull	Read Replies (1) \| Respond to of 164684

I'm considering making an investment in Amazon.com and am trying to understand Amazon.com's valuation when compared to other companies. While recognizing that Amazon.com might be considered to be in a unique position, it does seem to me that one should be able to compare Amazon.com with Barnes & Noble and Borders. Both companies are in the book-selling business and both are, or will shortly be, aggressively pursuing the sale of books over the Internet. I took each companies' latest quarterly report and found the following: Barnes & Noble ================= Amazon.com Quarter X Amazon.com ========== ========== ============ Market Valuation as at 02/28/98 $1,839.10 $2,331.50 1.27 Sales Revenue $66.01 $968.50 14.67 Net Asset Value $28.49 $456.00 16.01 Barnes & Noble closed near its all-time high. Barnes & Noble, with sales revenues 15 times Amazon.com, operating profits compared to operating losses, and NAV 16 times Amazon.com, has a market valuation of only 1.27 times Amazon.com. Borders ================= Amazon.com Quarter X Amazon.com ========== ========== ============ Market Valuation as at 02/28/98 $1,839.10 $2,527.00 1.37 Sales Revenue $66.01 $769.10 11.65 Net Asset Value $28.49 $511.40 17.95 Borders closed near its all-time high. Borders, with sales 11.65 times Amazon.com, operating profits compared to operating losses, and NAV 18 times Amazon.com, has a market valuation of only 1.37 times Amazon.com. It seems to me that, if the market's valuation of Amazon.com is reasonable, then Barnes & Noble and Borders are grossly undervalued. However, if the market's valuation of Barnes & Noble and Borders is reasonable, then Amazon.com must be grossly overvalued. Am I missing something?