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

To: John May who wrote (10479)	7/15/1998 8:19:00 PM
From: Glenn D. Rudolph	Read Replies (2) \| Respond to of 164684

John, This sums up the stellar performance: Message 5208752

To: John May who wrote (10479)	7/16/1998 5:34:00 PM
From: John Ke	Read Replies (1) \| Respond to of 164684

That's an increase of $16 million or 56% in SG&A quarter to quarter. It's hard to imagine how they could spend that much more in one quarter. Hi John, Yes I see what you're saying. I wasn't trying to defend the analysts' estimates, just trying to account for the difference. As I said, the advertising expense will be the key. Unfortunately, they do not report advertising expense in the quarterlies (not yet anyway). The SEC only requires that it be reported on an annual basis. I don't see how they could have increased advertising so much (they spent about $22 mil last year in total, and apparently the pace didn't pick up too much in 1Q98), but added employees just couldn't account for more than a couple million dollars. They've added hundreds, not thousands. Maybe it's the new distribution center they're building? Perhaps they're just playing the game, so that Amazon can blow away the estimates and the stock will rally. Makes all those buy recommendations look pretty good. Who knows? I wish these guys would release the income statement breakdown that led them to their estimates, but I guess that's asking too much. I do know this, I am anxiously awaiting the report. I have never followed an individual company so closely, and this story is incredibly fascinating. John