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: Jan Crawley who wrote (15931)	9/3/1998 11:41:00 AM
From: H James Morris	Respond to of 164684

Jan, thanks for the post. It appears that no one seems to know what the 'Thing' or now the 'blue blood' is worth. Sold all of my Sept puts @ a nice profit, thanks to Morgan Stanley. <Amazon.com (AMZN), in particular, has been the subject of intense debate. Earlier this week, Merrill Lynch analyst Jon Cohen said Amazon must "suffer substantial share-price declines before there exists any meaningful relationship between its market capitalization and its operating prospects." But the stock has also received thumbs up from analysts at Needham & Co. and Everen Securities who thought the stock had fallen too far. Robertson Stephens' Benjamin has a "buy" rating on the stock but also a $46 target price, based on a multiple of 50 times his calendar 2001 earnings estimate for the company. How can he justify a "buy" rating when the stock is trading more than $40 above his target price? Benjamin said he feels that Amazon, like any Internet stock that's going to be a winner in its respective category, merits a "buy" rating and thinks his earnings estimates are likely too conservative. "If anyone can tell you with a straight face that they can perfectly pinpoint two years from today what [Amazon's] earnings will be, that's not very realistic," said Benjamin, who added there's a good chance he'll increase his target price "dramatically." Investors, at least, seem to realize that the stock is not being valued on any traditional metric. "By the middle of October, I hope to see this stock truly begin trading based on its fundamentals. For the moment, however, this is a trader's stock," declared "Peter B" on one of Silicon Investor's Amazon message boards. >