SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?


To: Sarmad Y. Hermiz who wrote (52310)4/23/1999 3:10:00 AM
From: 16yearcycle  Read Replies (1) | Respond to of 164684
 
Sarmad,

I agree that in hyper-growth situations, the market has tremendous trouble valuing companies. But it is valued on a set of expectations. If those are exceeded the price will form a new base.



To: Sarmad Y. Hermiz who wrote (52310)4/23/1999 6:35:00 PM
From: Greater Fool  Respond to of 164684
 
>>I still don't know how it can go to new highs and stay there. There is no way to make a connection between whatever they report and the stock price. Can one say that $270 million rev should have $200 stock or $180 or $250 ? I think only a split can keep it at new high. That way it will seem cheap relative to AOL or Yahoo or Ebay. It seems the concept of market cap is not relevant here.

Tsk tsk tsk, there you go thinking about fundamentals again.

The actual dollar amounts don't matter to the investors; it's the surprise factor. As long as it's better than what people were "expecting" (consensus? whisper?), the stock will go up. How much up is unknown. Vice versa if the numbers are worse than expected.