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

To: David Howe who wrote (23593)	10/28/1998 11:44:00 PM
From: Glenn D. Rudolph	Read Replies (2) \| Respond to of 164684

Let's say that 5 years from now AMZN has 3 times the revenue that it has today. That would put it at around 1.5 billion in revenue. Let's say that their incredible management is able to achieve net margins that somehow are twice what BKS has averaged for the past 5 years. That would put earnings at around 75 million. With a PE of 25, the stock would be valued at $37 1/2. That's a lot of ifs and a long time to wait for the stock to actually be worth 37 bucks. David, You are correct; that is a lot of ifs. In addition, debt will be far higher in 5 years or a lot more shares will be outstanding due to a secondary. Therefore, let's look at $16 in five years and with a lot of ifs. Glenn