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

To: Bill Harmond who wrote (35607)	1/20/1999 6:06:00 PM
From: Gary Walker	Read Replies (3) \| Respond to of 164684

Now the "thing" turns to toast.... "In his research report, Blodget said the most prevalent investor concern about Amazon.com "is that it operates in a brutally competitive, low-margin commodity business, and we believe, therefore, that a proliferation of the 'at cost' strategy could scare the bejeesus out of investors and weaken the stock." Should change his title to "rectalist!" What did this guy do just wake up from a dream?!? "Henry Blodget isn't comfortable with the stock above $133 and is keeping a small position ahead of the earnings report." First Meeker, then Harmond, now Blodget. Who does that leave? Oh yes, Day Trader! How do you like the new e-com strategy, sell at cost? What business school brought us this strategy? UCLA? So how many lucky stars have you counted this month?

To: Bill Harmond who wrote (35607)	1/20/1999 6:13:00 PM
From: tonyt	Respond to of 164684

Amazon's Shares Drop 13% As Analysts Counsels Caution An INTERACTIVE JOURNAL News Roundup Amazon.com Inc.'s shares fell Wednesday after CIBC Oppenheimer analyst Henry Blodget -- whose bullish comments have moved the stock dramatically in the past -- said he won't raise his 12-month price target and sounded some cautionary notes about the Web retailer's future. In a research note, Mr. Blodget said the stock recently passed his 133 target. In trading on the Nasdaq Stock Market Wednesday, shares of the online bookseller fell $18.0625, or 13%, to $121.75. Mr. Blodget said the recent trend among Web retailers to sell merchandise at wholesale prices could curb investor enthusiasm about the companies, indirectly hurting Amazon's stock. Internet retailers Onsale Inc. and Buy.com announced plans recently to sell their products "at cost," relying instead on revenue from advertising. In addition, Mr. Blodget said, Amazon's deteriorating gross margins, pointed out in the company's fourth-quarter pre-announcement, "remain a potential concern for us." As his firm waits for Amazon's fourth-quarter earnings report Jan. 26, "we would maintain a small position in the stock and monitor the success and/or failure of the 'at cost' strategy," he wrote. Last month, Mr. Blodget stirred up a Wall Street controversy by setting a pre-split price target of $400 on Amazon's shares. That announcement fueled a rally in Amazon's stock that was striking even for the Seattle retailer. It also led some other analysts to assail the price target as hopelessly optimistic, with Merrill Lynch countering by saying Amazon should be at $50 pre-split. Mr. Blodget tried to cool the furor by clarifying that his prediction was for a one-year period, but as it turned out, it took Amazon's shares just 14 trading days to hit Mr. Blodget's mark.