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

To: Skeeter Bug who wrote (26012)	11/15/1998 2:34:00 PM
From: Glenn D. Rudolph	Respond to of 164684

Price: $124 9/16 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$1.61 d$1.72 (First Call: 29-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): $6,228.1 / 50 Book Value/Share (Sep-1998): $3.58 Price/Book Ratio: 34.8x ROE 1998E Average: NA LT Liability % of Capital: 54.9% Est. 5 Year EPS Growth: NA 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: On Friday, Barnes & Noble announced that it would acquire Ingram Books, the world's largest book distributorship. * We believe that the announcement has special significance for Amazon.com, the company which we see as most imminently at risk from Barnes & Noble's increasingly expansive online bookselling effort. * The issue here seems very plain: Amazon.com's largest suppliers (Ingram accounted for approximately 58% of the company's volume last year. Fundamental Highlights: * We believe that Amazon.com enjoys almost no significant competitive advantage in a market characterized by razor-thin operating margins. The company's success in generating revenues has come at the cost of very great (and persistent) operating losses. * We continue to believe that Amazon.com is probably the most generously-valued of all publicly-traded Internet companies, and we continue to recommend caution with regard to the shares. We maintain our Reduce/Neutral rating on the stock. Comment United States Information Processing - Internet Software & Svc 9 November 1998 Jonathan Cohen First Vice President Tonia Pankopf Assistant Vice President Amazon.com Inc AMZN: Barnes & Noble/Ingram Deal Underscores Risks REDUCE* Long Term NEUTRAL Reason for Report: Company Update Merrill Lynch & Co. Global Securities Research & Economics Group Global Fundamental Equity Research Department RC#20131323 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)