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

To: H James Morris who wrote (51026)	4/17/1999 8:06:00 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

Do you remember last year when Glenn and I thought that Bezos would run out of $money? Morgan Stanley sure proved us wrong. Don't you think?? James, It has only been delayed. Glenn

To: H James Morris who wrote (51026)	4/19/1999 12:31:00 PM
From: Rob S.	Read Replies (1) \| Respond to of 164684

I don't think Bezos will run out of money - but Amazon will be strapped with a huge debt for several years and that will end up diluting the shares and reducing the bottom line. -------- Notice how we have been seeing a big rotation out of the high flying sectors and into the cyclicals? This has been very pronounced today but has been a recent trend. What makes it so pronounced today is that many high multiple stocks are getting slammed while many cyclicals are up briskly. Anals ignored the tremendous divergence that has occurred in the market. The most recent line of logic has been something like: "Yea, we see that the leaders are trading at twice or three times the usual high water mark for valuations, but these are great companies that will continue to perform well." In other words, "We give up trying to rationalize why the stocks are up. They are up and our brokerages are getting fat. I just got a six (or seven) figure bonus for the great job I'm doing raising my price targets every couple months, so let the good times roll on!" Every time a divergence of the magnitude recently witnessed has occurred in the history of the market, it has always "corrected" to a more reasonable level. Although the argument can be made that we are in a broad trend of divergent valuations, the gulf between the darlings of the market and the ignored sectors has grown too deep to last.