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

To: IceShark who wrote (23900)	10/30/1998 2:36:00 PM
From: Sam Citron	Read Replies (2) \| Respond to of 164684

Ice, RE: Amazon Sales Tax Thanks for unusually well-reasoned and thorough reply. Forgive my ignorance, but didn't Clinton sign into federal law a restriction preventing states from imposing taxes on internet commerce for a certain period of time?

To: IceShark who wrote (23900)	10/30/1998 6:48:00 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

Price: $117 1/16 12 Month Price Objective: Estimates (Dec) 1997A 1998E 1999E EPS: d$0.71 d$1.64 d$1.78 P/E: NM NM NM EPS Change (YoY): NM NM Consensus EPS: d$1.67 d$1.66 (First Call: 23-Oct-1998) Q4 EPS (Dec): d$0.23 d$0.56 Cash Flow/Share: NA NA NA Price/Cash Flow: NM NM NM Dividend Rate: Nil Nil Nil Dividend Yield: Nil Nil Nil Opinion & Financial Data Investment Opinion: D-4-3-9 Mkt. Value / Shares Outstanding (mn): $5,853 / 50 Book Value/Share (Jun-1998): $3.58 Price/Book Ratio: 32.7x LT Liability % of Capital: 54.9% Stock Data 52-Week Range: $147-$22 Symbol / Exchange: AMZN / OTC Options: Phila Institutional Ownership-Spectrum: 0.0% Brokers Covering (First Call): 19 ML Industry Weightings & Ratings** Strategy; Weighting Rel. to Mkt.: Income: Underweight (07-Mar-1995) Growth: Overweight (07-Mar-1995) Income & Growth: Overweight (07-Mar-1995) Capital Appreciation: Overweight (28-May-1993) Market Analysis; Technical Rating: Average (27-Jul-1998) Intermediate term opinion last changed on 01-Sep-1998. The views expressed are those of the macro department and do not necessarily coincide with those of the Fundamental analyst. For full investment opinion definitions, see footnotes. Investment Highlights: Amazon.com, Inc. last night reported strong revenue growth for its third quarter of 1998. * During the September quarter, revenues grew by 32.5% sequentially and 305.7% year-over-year to $153.7 million. * On a GAAP basis, the company reported net loss of $45.2 million, or a loss of $0.90 per share, including $20.5 million of merger and acquisition related costs. * Excluding those costs, the pro forma net loss was $24.6 million, or a loss of $0.49 per share. Fundamental Highlights: * We believe that Amazon.com's continued substantial operating losses are unlikely to produce a meaningfully positive return on investment within the context of the company's current market capitalization. * Moreover, we expect that Amazon.com could see significant pressure on an already comprised margin structure with the inevitable entry of additional competitors (of which barnesandnoble.com is just one.) * We rate Amazon.com's shares Reduce/Neutral and continue to recommend that investors exercise significant caution towards them. Comment United States Information Processing - Internet Software & Svc 29 October 1998 Jonathan Cohen First Vice President Tonia Pankopf Assistant Vice President Amazon.com Inc AMZN 3Q98 Results Maintain Reduce Rating REDUCE* Long Term NEUTRAL Reason for Report: Earnings Report Merrill Lynch & Co. Global Securities Research & Economics Group Global Fundamental Equity Research Department RC#20130238 Stock Performance 0 10 20 30 40 50 60 70 80 90 100 110 120 130 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09 0.10 0.11 0.12 1995 1996 1997 1998 Amazon.com Inc Rel to S&P Composite Index (500) (Right Scale)