Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: John Ke who wrote (10166)	7/13/1998 9:52:00 AM
From: John Ke	Read Replies (1) \| Respond to of 164684

Amazon's 2nd-Qtr Loss Seen Widening From Previous Forecasts Seattle, July 13 (Bloomberg) -- Amazon.com Inc.'s second- quarter loss is expected to be more than double analyst forecasts of three months ago and the online bookseller won't be profitable until 2000, First Call Corp. said. Estimates for Amazon.com's quarterly loss widened to 43 cents from 20 cents, according to First Call, which tracks and compiles analyst earnings estimates. Projections for the second- quarter loss widened sharply after Amazon's first-quarter loss in April and steadily increased during the following weeks, First Call said. Amazon's costs are rising as it spends more to advertise its new music offerings and to compete with online sales from rivals Barnes & Noble Inc. and Borders Group Inc., analysts said. In April, estimates were for a 1999 profit of 2 cents a share. Now, analysts expect a 1999 loss of 73 cents, First Call said. ''They are going to spend heavily, and it will cost more to promote the music,'' said Ryan Jacob, portfolio manager at the Internet Fund, which owns Amazon.com. shares. Amazon fell 6 to 99 1/2 on Friday, down 29 percent from its record close of 139 1/2 a week ago. The Seattle-based company has not reported a profit since it went public in May 1997. Amazon spokeswoman Kay Dangaard declined to comment. Expansion Amazon bought three companies in April to expand into Europe and add online video sales. The expansion adds to Amazon's payroll and increases its technology costs, analysts said. ''They said at the end of the last quarter that they would increase their marketing expenditures,'' said Dain Rauscher Wessels analyst Mitchell Bartlett, who has a ''hold'' rating on the stock and expects the company will turn a profit in 2001. Bartlett said he expects Amazon to lose 40 cents a share on sales of $111 million for the second quarter. The company lost 28 cents in the year-earlier quarter on sales of $27.9 million. Amazon's betting that by spending more on advertising, expanding into Europe and selling products besides books, it will be able to pump up sales enough to become profitable, analysts said. Sales from Europe, as well as from music and videos, should boost the company's total 1998 sales to more than $500 million, the Internet Fund's Jacob said. The Seattle-based company is scheduled to report its earnings on July 22, according to First Call. Aimee Picchi in the Princeton newsroom (609) 279-4021/rjb/gcr.