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

To: Candle stick who wrote (4604)	5/21/1998 6:01:00 PM
From: zebraspot	Read Replies (1) \| Respond to of 164684

I may be dense, but what does Buffett's quote "you can't value these[internet]stocks" mean exactly? Does he mean they're worth nothing? Probably not.But, if they're worth something, there is a value that can be placed on them. It may be subjective -- though no more so than valuing Coke or Gillette -- but a value nonetheless. My judgement is that a company that has yet to prove that it can ever be profitable, in an industry that is getting more and more competitive each day, is worth very little. As an ongoing concern that is losing money, it's probably worth less than nothing. To a liquidator, or competitor wanting to eliminate it, maybe it's worth book value plus a little good will. So, what's AMZN's book? - $1 something a share? The current market valuation is $88 per share! Over $2 Billion U.S. Dollars! Professor Buffett would no doubt advise any student who'd suggest such a valuation to switch their major fast, and never look back.