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

To: Walter High who wrote (5741)	6/12/1998 10:29:00 PM
From: Mike M	Read Replies (3) \| Respond to of 164684

<<The point is: the price can be supported through good timing of news announcements and the constant supply of hope to the investors for a huge payout in the future.>> I know you think this because of your experience with an AOL short....Maybe your mistake, Walter, was just shorting the wrong company... It is difficult to equate the two companies...I find myself unwilling to shift from AOL because I don't want to change my E-mail address and I haven't come across anybody w/ better services....I might be willing to buy a book from AMZN but it doesn't commit me to another purchase, EVER. AOL has annuitized its business....AMZN simply has increased the number of ways they can make or lose money.... Where I really disagree with you is in your assertion that timely news releases will continue to buoy this stock irrespective of fundamentals. That works for a while but ultimately the revenue and income must support the price. The big boys are supporting this stock because they smell blood and are dealing with a controllable float....As they tire of the game and see the risk reward shift out of favor they will abandon this stock and then the shorts will have their way. Only superb revenue rise will support the price and it is difficult to envision what kind of rise will justify a price of 21 times revenue.... I am not short this stock but I believe the shorts will have their day with this company..... Your premise that shorting is a bad bet has merit, of course. By shorting a stock with momentum one must be right or they will invariably suffer from a taut sphincter muscle. Shorts also challenge odds by limiting how much they can make, yet potential losses are unlimited....They must always worry about things that longs never need to worry about, such as losing their borrowed stock.... Regards, Mike