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

To: Bill Harmond who wrote (48045)	3/30/1999 12:46:00 AM
From: Slumdog	Respond to of 164684

William, That is one long read. Prints out to 10 pages. Thank-you.

To: Bill Harmond who wrote (48045)	3/30/1999 6:55:00 AM
From: Sarmad Y. Hermiz	Read Replies (4) \| Respond to of 164684

William, >> http://www.worth.com/articles/Z9904C01.html Very useful and well written article. Thanks for posting it.

To: Bill Harmond who wrote (48045)	3/30/1999 10:19:00 AM
From: Bill Harmond	Read Replies (2) \| Respond to of 164684

Dave, This piece is very good. See pp 7-10 as it pertains to Amazon. capatcolumbia.com

To: Bill Harmond who wrote (48045)	3/30/1999 12:07:00 PM
From: John Donahoe	Read Replies (1) \| Respond to of 164684

RE: >>OK, I understand now. This may help some: worth.com; Very good article for those who want to understand the "new economy." It helps explain why valuations seem out of whack to most investors, why Barton Biggs is baffled, why high tech Gorilla's are leading the market, why AOL has a market CAP 3X that of GM, why Glenn shorted AMZN and why the bears keep talking about bubbles and tulips.

To: Bill Harmond who wrote (48045)	3/30/1999 6:34:00 PM
From: Dave Mansfield	Read Replies (1) \| Respond to of 164684

Thanks for the link William. It still does not answer many of my questions/concerns. Granted, the internet may become a super growth industry. But most participants in it have not shown an ability to make any significant money. Amazon continues to grow sales and losses at the same time. How much longer can they afford to grow? The article you linked to compared what's happening now on the internet to what happened years ago in television. It didn't take the networks very long to make money. And the the barriers to entry were confined by the airwaves. Only so many bands and hence so many networks. Where's the barriers to entry here? Anybody can and has entered this market. Many with a hell of a lot more capital than Yahoo or AMZN. Look at Barnes and Noble. They've been selling books for many years. They know this business. They make money at it. They have twice as many books available online as AMZN. How come they have a market about one tenth of AMZN? It's craziness that's all. And this little tidbit form your link: Not every high-flying stock stands up as well as AOL to a PEG-ratio analysis. At a recent price of $152, Yahoo (Nasdaq: YHOO) was trading at 323 times next year's earnings estimate, and its earnings growth rate was 27 percent. That works out to a PEG ratio of 12, twice the market's PEG ratio. "At that level, I'm not a buyer," concludes Waite. With AMZN not even making any money, we cannot assign any PEG to it. I'm not saying that traditional valuation models apply to the internet stocks, I'm just saying you have to consider something. And that is what most net investors absolutely refuse to consider. It will come back to haunt them one day. There is a huge bubble building here. I cannot tell you when it will pop, just that it will pop.