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

To: umbro who wrote (10778)	7/18/1998 12:55:00 PM
From: IMPRISTlNE	Read Replies (2) \| Respond to of 164684

Subject 22099

To: umbro who wrote (10778)	7/18/1998 1:00:00 PM
From: Rob S.	Read Replies (1) \| Respond to of 164684

Nice dig of the facts of the internet acquisition mania that is helping to fuel speculation. What corporate management in their right minds would consider paying $5.5 billion for Amazon.com? Do you think that a company could re-create Amazon.com's infra-structure and business levels with a lot less money and strangle the competition in the bargain? What if a Time-Warner or other media monster put about $250 million into building multiple-redundancy worldwide server centers staffed by some of the best programmers and web masters in the business (the lack of this type of redundancy is listed in Amazon's 10Q as one of their weaknesses - a hint that further expense for new web server facilities is needed). These facilities can be leased currently or built from scratch. Then they quickly inked deals with the major service, content and technology providers. Then they build or lease highly automated distribution centers in, say, Phoenix, New York and Tokyo. And finally, they beat Amazonianhighpricednuts.com at their own game by discounting all books and other merchandise by 50% to 60%, thus undercutting the competition. As a further incentive, if you purchased $500 worth of stuff from them you would earn free airfare to LA or Miami to visit one of their studio theme parks. And if associates referred customes to the site, they would be paid 20% commission on everything. They could plan on losing $300-$400 million per year for the next ten years and would still come out far cheaper than purchasing Amazonianinflatednuts.com and would enhance their existing businesses. If one or two large media, retailers, computer or other companies decide to get into the e-tailer business in this way, they will force Amazonianbustednuts.com into the bankruptcy courts. And they will have done it for a lot less than by buying a risky, yet to show profits start-up. Is AmazonianOrwelianthinkingnuts.com inflated beyond all reasonable bounds? From a replacement method of valuation it sure is. Go Amazonianuts.com!!! Upward toward 130!!!

To: umbro who wrote (10778)	7/18/1998 6:56:00 PM
From: umbro	Respond to of 164684

Is it too late to cover Amazon? We couldn't let an analyst update slip by without noting that Needham & Co. has just now gotten around to covering some of the Internet players. Among others, the investment house picked up coverage of Onsale (ONSL) and N2K (NTKI) with a Strong Buy and Buy, while also starting Amazon (AMZN), Cybershop (CYSP), and Preview Travel (PTVL) with Holds. What were they thinking? "I've said it before and I'll say it again: There just ain't nothing left in Internet stocks," commented Rick Berry, analyst with J.P. Turner. With the Nasdaq index now above 2000, he may finally be right. Excerpted from: redherring.com ("Insider News", "ANALYST UPDATE: AS EARNINGS EXPLODE, THE STREET UPGRADES", By Peter D. Henig, Red Herring Online July 17, 1998)