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

To: Robert Duncan who wrote (8932)	7/6/1998 7:23:00 AM
From: Glenn D. Rudolph	Respond to of 164684

I guess my question is, are people really buying this because they really believe AMZN will some day make massive profits or are they buying it simply because it is "going up" or because "PE doesn't matter with internet companies"? Also, I would be interested in knowing if any traders on this board have profited from playing the "irrational" side of trading, which logically would seem to fit AMZN. (What I mean is, rationally AMZN is overvalued but who is to say that people as a whole are rational?) Robert, Welcome to the thread. That is important. I believe my stance is clear in that I asked the very same question as you. No one wanted to state AMZN was worth this valuation. Others, indicated that does not matter since the momentum is up. I hope you get a lot of replies because I would be interested in reading those posts. Good luck also! Glenn

To: Robert Duncan who wrote (8932)	7/6/1998 8:06:00 AM
From: Arik T.G.	Respond to of 164684

Robert, Great post. >>All of the short arguments seem to make a great deal of sense regarding AMZN. They do, don't they? >> are people really buying this because they really believe AMZN will some day make massive profits or are they buying it simply because it is "going up". The latter. >>who is to say that people as a whole are rational? True. We live in a very interesting time. This year and the next two years will teach you more then college could ever do if you just observe and learn. People are buying (holding) internet stocks at these ludicrous levels because they believe they'll trade higher the next day, week, or month. Some of them believe the hype, but that's not why the bot the stock. They bot it because it goes up and they believe it will continue to do so, meaning other people will bid it up. That's a pyramid, like chain letters. If you get in close to the top (recognizing a new fashion/pyramid as it forms) you will win a lot, but if you get in at the base (joining a well spread fashion/mature pyramid) you'll lose everything. A nimble trader can ride the fashion till it matures and jump ship as soon as reverse signs begin to show, without losing much from the top. Most people will crash and burn. ATG

To: Robert Duncan who wrote (8932)	7/6/1998 9:37:00 AM
From: Skeeter Bug	Respond to of 164684

robert, it is my opinion that this kind of speculation is fueled by the minting of money that has to go somewhere. since everyone knows we are in a "new era" and the internet plays a key role, the excess money (cheap money) is flowing to the internet. funny thing is that at some point people will realize that amzn isn't even an internet company. it is a commodity mail order company with a nice web site. of course, all their paper profits will be gone by then. good luck. the world we live in is full of insanity. this fact is most apparent in today's stock market.