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

To: Rob S. who wrote (28012)	11/24/1998 12:06:00 PM
From: Alan Newman	Read Replies (1) \| Respond to of 164684

From Briefing.com: 10:50 ET ****** AMAZON.COM INC. (AMZN) 214 -4. Just when investors feel that they have figured out the behavior of Internet stocks, the market throws them for a loop. Shares of leading online book and music retailer opened significantly higher this morning following the marketing announcement with Microsoft (MSFT 122 1/2 +3 5/16) that would enable Amazon.com to become a premier music merchant on the MSN shopping site. In fact, news of the deal prompted the shares of AMZN to rise by as much as $10 on Instinet just prior to the open. And while the stock opened at $224 and traded as high as $224 3/8, profit taking has sent the stock to around the $205 level before bouncing back. So what does this mean? Absolutely nothing. It only highlights the volatility that is associated with these high flying issues, in particular when information about futures business relationships is released. One might have expected the stock to continue to trade upward on the press release, following yesterday's more than $37 gain, but one can be assure that such a relationship with Microsoft won't come cheap. This is not mentioned in the press release, but expected to be a footnote when the company releases its next financial results. There is not doubt that the relationship is good for both sides as Amazon.com will benefit from the increased exposure that its music title offerings will have on the MSN shopping site. Yet, the real winner will be Microsoft as this relationship will continue to drive more viewers to its enclave of online shipping sites. And while the arrangement will enable Amazon.com to compete more effectively with other online music distributors, the true winner is Microsoft as with the stroke of a pen, it has generated a substantial fee by lending its name and site to the Internet craze.

To: Rob S. who wrote (28012)	11/24/1998 3:29:00 PM
From: Robert Rose	Read Replies (1) \| Respond to of 164684

<Mike it could be but its hard to tell that it won't take a couple of tries up before the "buying panic" psychology is fully satiated. Of all the indicators I know of, the seat of the pants read of the market psychology may be the most telling: when novice incestors are jamming the lines of their brokers demanding that they "get me into the Internet stocks now!" regardless of protests that the valuations look dangerous. Many bears have just given up and the language on the web sites shifts to how many 37+ days the stock will have after it splits. Those signs say that the flow of dollars into the stock is near its' zenith. > Sounds like another shoot straight from the hip. Thank you.