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

To: Keliven Wong who wrote (4232)	5/12/1998 12:57:00 PM
From: Candle stick	Respond to of 164687

Ed Kerschner, Chief analyst at Paine Webber has a report out that was talked about on CNBC, entitled "Net for naught". Essentially it a warning about buying internet companies that focused on 4 points: 1) You CAN pay too much for even the best companies. 2) Today's company leader may not be the leader or even exist in the future. ex. Atari..... 3) Beware of mediocre companies that are riding the coattails of the "hot " sector.... 4) these trends change quickly, and if you are not prepared to turn around fast, this sector is not for you..... I notice that a lot of the internet companies the last week or so have lost some of their luster and VOLUME. The stocks are dropping, some faster than others....some like XCIT and SEEK are already down substantially. AMZN is down 15% from the high, and this after that so called "great" earnings report just 2 weeks ago. Block trades are coming out for over a week now, and I assume this to be institutional selling, and money coming off the table. It looks to me like PW was putting out a report to point to a few weeks from now to say "see, I told you to be careful!" for when the sector tanks. The decreased volume is evidence of the loss of momentum players and this "hot" sector cooling. Biotech seems to be where all the hot money has gone. Now all you have to support prices in the internet sector are the fundamentals and earnings......oops, I forgot! there are no earnings or fundamental analysis to support these valuations..........what does that mean? I suppose prices MUST come down................;^)