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

To: IceShark who wrote (32642)	1/5/1999 2:27:00 PM
From: KeepItSimple	Read Replies (1) \| Respond to of 164684

Todays price action in Amazon can be completely explained by the ignorant masses or retail online traders. Early this morning, the stock dipped to 106. These people were the ones who read the press release that showed Amazon's sales didn't increase to 400 million like some had predicted, and that showed they STILL couldn't make a dime even with the increased sales. It was clearly shown that CDs and videos have even lower profit margins than books- so obviously that nips their future profitability in the bud. But then the retail masses saw Amazon's stock trading for less than 300 dollars, and they flooded in. I'm a bit worried about tomorrow, because there is another large segment of retail traders who only see stock prices in the newspaper when they drink their morning coffee- and these guys probably don't even know the stock has split yet. Could be a lot more buying tomorrow. As I did yesterday, I'm buying some in-the-money calls to hedge my Feb puts. Since Amazon is up 9 (or 27 pre-split) it appears the momentum has survived, and that will encourage more people to try and jump on the bandwagon. It remains to see what the increased float will do to the price in the long term.