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

To: llamaphlegm who wrote (9682)	7/9/1998 11:30:00 AM
From: Greg M.	Read Replies (1) \| Respond to of 164684

The Textbook Cellar, 'Your Underground Bookstore,' Hits the 'net. biz.yahoo.com Would someone please tell these people that although they think there are no real barriers to enter this market, they are very wrong and should go away. Forget swelling competition! Forget inevitable lower margins! Go Amazon!

To: llamaphlegm who wrote (9682)	7/9/1998 2:51:00 PM
From: Rob S.	Read Replies (3) \| Respond to of 164684

Amazon, above all else IMO, is a "momentum play" at these lofty levels. REasonable assessments of markets and earnings potential have long been thrown out as the major consideration. Amazon is now advertising on and off the web at record levels - more than 15% of their gross income goes into advertising and marketing efforts (A nice chunk of that ends up into the hands of Yahoo! and other search firms). This "visibility" is part of what has spurred the awareness and enthusiasm for the stock. Momentum has played out in the advertising - they have reached a point of saturation and maximum impact, IMO. Without increased pressure to sustain the "advertising factor" engine, the momentum due to that factor is bound to collapse. I think part of the reason the internet stocks have gone up so much is because of the contraction due to "dis-inflation" of the computer tech stocks. Despite the news of discouraging earnings and upsets due to Asian concerns, net money flows have continued to pour into the equities market. That money needs somewhere to go. A significant portion of the new money is in the "hot hands" of the new internet traders. Money and momentum that would otherwise be channeled into the beleagured tech sectors has ended up in the inet stocks instead. Some of that is out of frustration and part of it is out of reflection that inet stocks aren't much vulnerable to Asia or collapsing chip prices, etc. But the "hot hands investor tech-stock discouragement factor" has gone thru the period of bad earnings pre-announcements and should dissapate as tech investors look past the spring & summer quarters. Then there is the "media hype factor". The media has about the attention span of a four year old baby, and IMO, the attention being paid to the inet stocks is about run out or turn much more negative. The TA on Amazon and some other inet stocks looks ready for a decline but not yet totally confirming. The failure to rally today and punch through the gap down at 122 indicates a breakdown in upward momentum. If we don't see a close above 122 within the next week or so, the stock is almost certain to break down to lower levels, IMO. ------------ But that's just thinking. Amazon is king - - Go Amazon.com!!!