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

To: Sarmad Y. Hermiz who wrote (42838)	2/27/1999 1:36:00 PM
From: Rob S.	Read Replies (1) \| Respond to of 164684

It reacted pretty well considering. They beat a couple of other companies to the punch by a few days - a couple of companies will open their sites this week or next and Soma.com has been selling pharmaceuticals since January. The strategy of giving away $10 for the first purchase will work, IMO, to drive registered customers and sales at a rapid pace. For Internet stocks, registered customers is most of the game to gaining a high valuation. Forget about making money or that you paid people to fill out a form. The bottom line as far as the immediate effect on the stock price goes is reporting customer "reach" and sales. So when Amazon or DrugStore.com (it's not public so they don't have to report) reports growth figures for these metrics, the stock is likely to move higher. To what degree this off-sets a downturn in the Internet sector is a big question. I think tech stocks may rebound in a few days but will head significantly lower by this summer. I expect the Internet stocks to move down at least as much as the tech sector, probably a lot more. I have my doubts that Amazon, Yahoo! and other leaders can buck this trend. But if we have learned anything from the past, profits (losses) don't matter much at this stage of the game and "better than expected" sales growth does.